I'd probably steer clear of any non-producers and look in the...

  1. 349 Posts.
    I'd probably steer clear of any non-producers and look in the mid-cap region. MAD is producing a profit, high success rate of drilling program encountering oil, large lease holding, large reserves which are looking to be upgraded, the potential to increase well production quite easily, so you have a good case that even though it has run hard, profits will increase from here, acreage will probably increase and because they have their own fleet, they can drill cheaply. The potential is WPL I guess.

    LYC is another one which will be a safer entry in a week or so once the TOL has been approved and issued as they are in the rare earth space which is dominated by China and have the potential for uber profits.

    OST is ramping up iron ore production to 12mtpa and getting away from their steel business.

    The problem you will have with receiving dividends is that the government has recently changed the law about minors and unearned income so you in a few years time you could find that they are paying a high tax rate so make sure you structure the investment properly.
 
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