Yeah, they blew it at Dargues, white line fever, paid to much, got reeled in, come in sucker, there goes $200 million, and then the Chairman fell on his sword. Dargues was not worth even a third of what they paid for it, the deep drilling has been disappointing, so now they are crossing their fingers that some sideways drilling will bring a result. Bad management decision making this was, and the stupid thing was, with the great results at Federation, they didn't even need to buy Dargues, all that money could have gone into Federation and the share price would have risen much higher. Someone in the company had to take the fall.
Interesting that in their presentations they showed all these nice Waterfall graphs (can anyone understand them?) and yet they never presented debt figures, or an estimated timeline for the repayment of Dargues, or the full effect of dilution on shareholders.
The sellers of Dargues must be thanking their lucky stars, they probably can't believe the price they got for unloading that. They say there is a sucker born every day, and when you are selling something, you just need to get lucky, and have one come your way.
Gw
AMI Price at posting:
38.0¢ Sentiment: None Disclosure: Not Held
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