why are we keep saying on stage 1? am i missing something? i think we pass stage 1, gasification and 5 MW. the next one is all 100MW, ammonia, expanding gas drilling, urea.
share price is a bit tricky, current on is cheap i would say but the remaining deal structure is very important. any large scale dilution will definitely, put shareholder at disadvantage. i believe management (or barrenjoey) should know this clearly.
think of it as a share of pie, the pie is not getting any larger but the number of share.
it is not dilution is not good but it needs to be viewed related to earning potential and investor earning expectation.
Recent announcement means the pie can get bigger. Every aspect of this company, there are commercial opportunity and one of them is ISG opportunity in term of operator and IP. the deal with Meijin will enhance this company credibility.
even if we scrap this urea project and go back as a gas operator, we should have a significant revenue. the only reason this gas reserves is off balance sheet is because it is against accounting standard. thats why Justyn mentioned that he is not worry about this company go under. we also sit at >60 M equity. Even though majority asset is capitalised exploration cost >90M, we can get 70M back from recent deal (which is a good ROI).
i think 3 reasons i think why share price is not moving atm: Market liquidity issue, Investor waiting for deal structure, lastly, the first revenue will be 2 -3 years out.
within this 3 years there will be plenty of things happen that might affect share price positively and negatively. we could have an increase share price tomorrow but within this 2 - 3 years there is also probability that the share price back to current one. (i.e. those holding 4 years ago, been through ups and downs). but this company has plenty of opportunity from energy and food sectors and having management explore opportunity without having to wait on each project i think is very good.
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