I’vebeen a cynic since ~20c based on the low quality of their...

I’vebeen a cynic since ~20c based on the low quality of their producing assets andthe high breakeven price, plus the likelihood of management wanting to grow fortheir own sake & not caring about shareholder returns.

Ayear later, I’ve taken another look at 9 cents and the answer is still:

• Their assets are not worth what the share price implies
• Management are low quality and not incentivised to create shareholder returns

Theirconference calls are shambolic ie. CFO is editing errors in the presentation onthe go, Chairman gets annoyed and other management plus CFO smirking like kids.As Logan Roy would say, these aren’t serious people.

Thecompany is un-investable unless they put up the for sale sign and this is awind up play. Even then, at the current price I do not think they’d be able tosell it for $50m+ because their assets are low quality therefore low FCF andthere’s reasonable rehabilitation costs that’d come with it.

Mostlikely outcome from here is a slow death and getting paid “distributions” whichare outweighed by capital losses.