Originally posted by whisky49
"Create shareholder value through exploration for oil and gas while operating to industry best practise standards"
The mission statement is still perfectly relevant, 5 years ago we had no oil at all, now we have our share of a RISK estimated 641 Mmbbls 2c, fully evaluated ,with reserves and on the way to production. so a lot of value has been added .
As with any explorer with no income and 3 years away from having any, plus financing ahead , there is no way that value can or will be fully reflected in the shareprice, the two biggest unknowns are yet to be resolved.
Don't confuse Value with shareprice, they are almost always out of kilter and often in extremes, in FAR's case mainly because evaluation and development spending preceeds income , when you have none its a major issue,..there is no magic formula to evade this reality...our best chance was SAMO , which would have offered options, but as we know exploration comes with no guarantee...clear.png
So where does that leave us now, well we could sell out, sell down, get taken over or continue on to development and all are possibilities, but while there are no big buyers and weak hands, the shareprice will get pushed around .
Cheers Whisky
Hi Whisky,
Understood, however currently whatever spin you put on it Far have simply not created Shareholder value (except maybe for a few lucky shareholders) and therefore by definition are not enacting their mission statement. this is A Company's "raison d'etre" and a fairly serious issue if they are no abiding by it IMHO. You can't have a Board making a mission statement for a company and then doing the exact opposite without questions being asked?
I googled definitions to be check whether there is any ambiguity with the statement, but it seems clear to me that you can't make an argument shareholder value is being created - for most it is being destroyed and the Company should recognise they have not delivered on this and consistently over a long timeframe (apart for 4months prior to Samo maybe). Context is important and they may well deliver in an even longer timeframe or by selling the oil they have found (albeit at a greater price than the current total value of the company) to address this. Who knows, we just need patience apparently.
So far, over 5 years, and after great successes apparently, Far have created approx minus 3c Shareholder Value for me personally.
It's in black and white and no words or creative accounting can convince me otherwise.
Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders.
Shareholder value is the financial worth owners of a business receive for owning shares in the company.
Shareholder value is the value enjoyed by a shareholder by possessing shares of a company. It is the value delivered by the company to the shareholder. Increasing the shareholder value is of prime importance for the management of a company. So the management must have the interests of shareholders in mind while making decisions. The higher the shareholder value, the better it is for the company and management.
Cheers.
(20min delay)
