Totally disagree . We needed the CR and DP timed it perfectly.... the only stuff up was the ITM options, that was crazy at the time . I would have been very happy had they done a 1:1 fee option at a 4 c strike .
SHE haven't raised capital either and their share price has also fallen, admittedly less in % terms but BRK rose more than SHE did as well if you compare their graphs.
I do NOT want our MD determining the operational course on the company based what he thinks the share price will do, but on the capital needs of the company to be able to funds it's operational goals. Oil and gas 101 is if you need capital , you strike while the iron is hot . DP has ensured the Rangers is fully funded and raised at a time the share price was close to it's highest .
We will never know how much the SP has been affected by the August raise and there is a chance that raising later could have meant raising at under 3 cents... and we would be complaining why he didn't do it earlier. A rights issue at 3 cents ( with the free ITM options) that would have allowed all holders to participate would also almost certainly effected the share price negatively as well. It 100% would have been fairer to all holders and I would have been happy for that to have happened on that basis. I wonder how many of those complaining about the placement in general would have participated in the raise , even with a free 1:3 ITM oppie. In that regard, IMO the placement was the best way forward.
In all honesty it is easy to slag off at the company saying they should have done this, and they should have done that, but we don't know the behind the scene operational circumstances. IMO, the only thing they SHOULDN'T have done, under any circumstances , was given those ITM options as part of the raise.
Did that August ITM options gift piss off a lot of holders? .. 100% it did, including me. Did those August ITM options kill the share price? I doubt it. Did the August $9 million raise kill the share price?.. probably.... was the cap raise needed?.. most certainly. Should they have done a general rights issue vs a placement to institutions and sophs?... IMO no, because that way they guaranteed they got their full funding for the well expeditiously and that funding IS the most important detail going forward.
If there was an earlier positive momentum and positive Jewell results then SHE would have benefitted from that , their share price would have lifted rather than fallen as Jewell right now, is SHE's only asset of substance . If SHE's SP has fallen due to the lack of participation in Rangers then BRK's share price should have risen or held despite the CR. The fact that both have fallen despite taking different paths despite the success of Jewell to me indicates a significant part of their SP falls is market , not company related.
Lack of capital cost us at least 5 more DSU's and I 1000% support DP in ensuring that doesn't happen again .Risking Rangers capital on the outcome of Jewell( low chance of failure admittedly ) and the vagarity of the market /a right's issue when certainty was needed would have been reckless of the MD.
Yes the share price action is frustrating, but not having Rangers fully funded and ready to go under present circumstances would have been a worse outcome than a drop in the share price.
@Pastry1 ... mate , I am going to call a spade a spade right here and now. As far as giving DP the boot, why wait for Rangers and Flames.?.... you don't trust him yet you want him to make sure all goes well with the wells before you give him the boot?.... I'm sorry, but that is one of the most ludicrous things I have read for a while... you either want him or you don't but IMO you can't have it both ways.
The only boot DP deserves is the " golden boot" after Rangers and Flames are in production for steering the company through a period where it is kicking goals all over the park against some very big players, and we will see the benefits of the asset revaluation that will result.... Has DP done everything perfectly?.. of course not who who ever does?
My advise, if one doesn't like the captain, then get off the ship. Having said that, if the Captain gives away ITM free options as part of a institutional/ sophisticated placement again without giving general shareholders the same opportunity, I will have have some thinking to do.
Happy to hear opposing points of view.
Cheers
Dan
BRK Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
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