ippy, they won't repay $20m of debt this year.
The shareprice represents $80m of market capitalisation. Net debt at 31 Dec 19 was c$72m. The EV is c$150m.
What do you forecast their net debt repayment to be this year? I think it would be around $2m-$3m a quarter at current rates. "Finger in the air" assessment.
ippy "yes they will need to continue to incurred costs to maintain production and gas prices are going south but if they can remain profitable and cash flow positive than everything is ok . The SP is a joke at the moment"
No, they need to be able to sell the gas they've already got. The reason Mereenie has declined from 40 TJd to 25's TJd is because they can't find a buyer for the gas. More gas will help, as it means they can get some efficiencies down the NGP but i dont know what volume is required for that to happen....
Add to My Watchlist
What is My Watchlist?
