Hi Kit,
Not new here. Just did not post until litigious zealots were put away (I would have been a prime target).
So we want to know if we are safe (or at least our money is). MIN has shored up confidence with their financial backing and an apparent appetite for gas (nearly all of it yet to be in the reserves basket). The immediate influences on the share price as I see it :
1. The re-testing of the just tested Red Gully North well (ingress of water through the cement bond). Management are confident of a successful outcome. Decision to proceed depends on costs and availability of resources. Costs look to be $3.5m (see last cash flow forecast). This will really test the share price.
2. Debt repayment of $15m to previous J.V owner due end of August. Finance deal is "subject to" - most are hoping MIN can step in. Otherwise repayment over 2 years at 8%payable each quarter ( $2m+/qtr) PLUS options to be issued at draw-down over 4 years (40c and 50c so you would be pretty safe). Management will be hoping that they are exercised during the loan period + $6.25m to the coffers. Puts a bit more pressure on the RGN results.
3. Cash Flows at present look good. Could be just over $5m at 30th June. EBITAD are 50% (and rising) on revenues of +$5m/qtr. Extraordinary expenses coming up could be $3.5m test on RGN and a possible tie-in of $3m ?? to the existing production facility. If RGN test is good, share price wont even blink.
These are off the top so may put me in the poo with some figures and logic. (Now your turn to research).
EGO Price at posting:
40.0¢ Sentiment: Hold Disclosure: Held
