I borrowed this from MEL's CR presentation in May. Under their own assessment of $1/gj, and MEL's updated Reserves and Resources @ 36PJ MEL could be worth $36m. (Don't shoot me that's MEL's own numbers!!) While I don't think that MEL will ever hit $1/gj IMO the more work done to advance/repair/optimize the Odin/Vali fields the more each gj will be worth.
Everyone knows that Glennons is MEL's only debt provider, No 1 SH and Interim Chairman and that Glennon have just commenced a strategic review. IMO this won't be a firesale, at least it won't be unless Glennon are winding up to take a big hit to their balance sheet.
If MEL was sold now at around 20-25c/gj ($7-9m) Glennons debt and interest would be paid but SH's, including Glennon, would be looking at virtually no return. Glennons cost base on their SH is around $3.3m.
If Glennon continue to support MEL, as they have said they will, and JV advances the fields to a value of 50c/gj then Glennons debt is repaid and all SH's could get 0.008cps. Glennon get half their equity back.
At 75c/gj Glennon break even.
So what are Glennons going to do? They clearly haven't given up on MEL having advanced MEL a further $2m last month and they have a genuine incentive to achieve a decent result for all SH's as they are the largest SH.
IMO Glennon understands that it's debt is reasonably safe while its equity is at risk. By advancing unsecured debt to MEL they still rank ahead of SH's, so will get paid. By advancing that debt they keep MEL alive and improving the chance of recovering their equity.
I'm interested in anyones elses opinions on what Glennon can/could do. I haven't really seen a situation like this before where the banker is the chairman and the major investor!
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- Ann: Commencement of Strategic Business Review
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Last
0.2¢ |
Change
0.000(0.00%) |
Mkt cap ! $3.674M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
9 | 16630498 | 0.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.3¢ | 10381720 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 6630498 | 0.002 |
9 | 37800999 | 0.001 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.003 | 5681695 | 8 |
0.004 | 3097000 | 4 |
0.006 | 311675 | 1 |
0.008 | 100000 | 1 |
0.000 | 0 | 0 |
Last trade - 16.21pm 25/07/2025 (20 minute delay) ? |
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