I'm getting close to cutting ESG lose - the scale of the lack of communication from Casey et al is concerning and I regard it as borderline dishonest. Add that to a building feeling that they don't have SH interests at heart; are rewarding themselves with performance bonuses while refusing to demonstrate progress to the market beyond a 'trust us, wink wink'; a cash burn rate that is very substantial in light of progress delays, and I think other opportunities begin to look more promising. Even the likely upside is now pegged around the $2 mark while the timeframes drag out further. I've only had my eye on ESG for 18 months and it was STO very bullish buy in that acted as a catalyst for me to jump in but in retrospect staying on the sidelines a while longer may have allowed me to see Caseys 'management style' and stay clear.
And I wouldn't be surprised if several large investors could feel likewise - unless they are privately assuaged by Casey and have access to details to which retail holders are not privy.
ESG absolutely must come out with much more detail around what is going on with dewatering and reserves progress as they will no longer get the benefit of the doubt around newsflow. Failure to do so plus another inept (and somewhat contemptuous) show at the AGM a la 2009 would deserve a significant SP dumping. ESG could fall down to 65c in that scenario, imo.
ESG Price at posting:
83.0¢ Sentiment: None Disclosure: Held
