July flowrate, page-41

Looking to top up as the price is pushed down, have only been in for 4-5 months after the Covid crash, but I can feel the pain of long term SH when a stock they thought would fly has stumbled or fallen over months and years. (We all have a skeleton or two in our portfolios that has taught us a valuable lesson, one of mine cost me over $40K but luckily I have recovered from that boo boo)

Reason KAR peeked my interest

• They took a big hit with Covid as did the oil price but once recovery happens and it will (history has told us with many market crashes)
• Money in Bank outweighed current market value(big Tick)
• Negotiating to go from Explorer to Producer (big Tick)
• Renegotiated asset purchasing terms that were so favorable to KAR (big Tick)
• Room for expansion after asset purchase finalised with cash left in the piggy bank to help (big Tick)
• Oil and Gas price will recover in time(big Tick)

Now I have been working in mining for 15 plus years (Not oil and gas) and to get any deal across the line takes time and so many boxes have to be ticked which does not happen in a day or a week, now throw in that we are negotiating in a country other than Australia and time lines can expire and be extended due to all parties involved needing to agree.

Why is an asset being sold if it can produce, all companies have their own set of rules and sliding scales of profits and risks required to meet that company expectations, or they may need to reduce spending or debt. They apply a formula/calculation to act in the companies best interest which may result in assets being sold. I have seen Tier 1 gold mine company spend 5-10 million on a start plant only to walk away. Still to this day 6 years later there is 20-30 shipping containers full of plant/ equipment sitting there albeit in a country with a sovereign risk, or another company that let their mining leases lapse and yet the next owner opens an operates for 15-20 years from the same ground in Australia

The best you can do is have a trading or investment strategy and stick by principles and ensure all the boxes you need ticked to remain trading/ Invested are meet.

Green market day it was on the ASX, but to say all Oil and Gas entities had a green day would be stretching it.

I have made KAR a major slice of my portfolio in line with my strategy and I hope we all make money in the next 6-12 months both New SH and Long Termers who deserve it or at least a better exit price.

Cheers

Oppo