On reflection, there is some merit in some of the recent statements in company releases in how quickly this has risen up.
We as recently as 18 months ago had not drilled a hole yet in WA and the same applied in Mongolia.
Now we sit on the cusp of production in WA and are about to embark on a pilot well program on the Mongolian Tier 1 sized asset.
It always costs money to get there and make money. The sense seems to be that we have risen very quickly from nowhere.
That company immaturity in overall terms come to cost with the recent raising, as reality of being a more significant size hit (we actually need money to do big things now!)
There is also increased caution evident in that announcement yesterday, with now two debt options being considered and no guarantees.
We have a rising interest rate environment and sector headwinds in favour due to production potential and against in some ways due to being a gas producer.
All in all, I think they will get something done and hopefully it is announced this year and smoothly paid back inside a year or so.
We are at our low point it would seem price wise and held up pretty well yesterday overall. There are some keen buyers soaking up the placement sellers- no doubt aware of the high potential of the next 6-12 months.
40c valuation from MST is fine by me- a small 4c drop and we are now in a much more mature state for the significant commitments ahead.
Hold your Talons!
TPD Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
