1. The Jeruk downgrade is not good, but at 13 cents was already factored into the price. Remember that Cue contracted out of its $50M buy back penalty, and now that Jeruk may not even go ahead, there will be no need to raise additional capital for drilling and development. There Jeruk value just adopts a big fat 0 on the books, but I reckon it is already priced in.
2. So that leaves Oyong on the books, and with Cue seemingly having enough money already in the kitty to perhaps get through to the start of the project cashflow, well this averts a capital raising. So we can take the existing share numbers now and with some certainty (or maybe hope) not have to factor in any more dilution.
3. The Oyong cashflow will also allow them to contrbute to the Maari development as well, again hopefully without too much equity raising or dilution.
4. They still have ongoing Gobe positive cashflow.
If you take the existing cash and share numbers, and then line up the valuation and potential cashflow of Oyong and Maari, at 13 cents it could be a winner. Best to ignore Jeruk altogether.
I pity the poor sods who subscribed to placements ion the 20s and rights issues as well. They must really be hurting now (and selling as well) which would mean it is a good time perhaps to be buying.
The Jeruk news was not all bad.
CUE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
