$40M in cash at the end of the quarter is healthy, but US$5M now also in the kitty from Woodside as well.
You would expect that if similar production levels are maintained in the current quarter that cash receipts must be a good bit better given the higher oil prices prevailing at present.
So that would take them past $50M of cash I expect. There is US$14M of cash to pay for the Wortel development during the year and also ongoing debt repayments to Maari bank lenders to carry on with, but that is still going to leave Cue with $40M+ in free cash.
That is a good position to be in if one of their free carry wells hits the paydirt and they need to front up with development money down the track. This would mean less dilution for shareholders if they need to raise more cpaital and therefore more gains for existing equity holders from a discovery.
This is a very sound outfit. I am definitely sticking around.
CUE Price at posting:
31.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)