Certainly frustrating to see the share price languishing at current level, given optimism that was around this time last year.
In the short term, I see the main drivers being:
The Release of the Strategic review- as per the quarterly update 'The company expects to finalise the Strategic review shortly'.
Debt Reduction - Outstanding Debt currently sits at US$56.1m with US$35m Cash on Hand. So a Net Debt position of US$21.1m.
With an expectation that the Debt Balance will be down to US$40m by the end of the year. Net Debt will potentially be circa $5-10m, provided no major expenditure required.
This position could be bolstered if the 'Strategic Review' clears a few assets and reduces the debt further. The Company could then utilise the solid cashflows to pay dividends and let shareholders access the franking credits.
Risco Energy Investments - Can obviously see potential in Tap and have built a modest stake, hopefully this stake increases.
If any of the other matters /noise / games impacting the share price are resolved, then this will be an added bonus.
TAP Price at posting:
31.0¢ Sentiment: Hold Disclosure: Held
