Zero forecasts and suprise capex are not helping but cash is the problem. VEN/MEL need cash to remediate Vali 2 (and maybe 3?), upgrade Odin/Vali connection and drill Odin 2 and 3.
Odin-1 is showing potential to get MEL to breakeven but it can't pay for the required capex. MEL have $2m left in their facility so will need to juggle capex requirements.
The demand remains for East Coast Gas and it isn't going anywhere. All that MEL/VEN need to do is to get that gas to market!
I'm reminded of that old saying "the night is always darkest just before the dawn". It feels ugly right now but Odin-1 could be our "approaching dawn". All we need is for the next qtr to be a little kinder.
MEL Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
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