Pretty normal Vetrun. Cash backing is around 4.5c and there has been a heavy block at 3.8-4.0 for a while, with high volatility, low volume trading between 4.1 and 4.7 for a while. Essentially any half decent sized trade has been moving it a few pips at a time.
The company has a 8 million loan at high interest to BYE (covering outgoings + approx 500k per annum additionalincome), along with a 10% interest in a future BYE well (Bivouac Peak). However, Bivouac Peak is on the backburner until BYE secure additional funding to get an offshore well into production. At this point I'm expecting the Bivouac Peak drilling to occur around Q4 2017/Q1 2018. MEL have stated that they are analysing other investment options, however we've had essentially a year of nothing. Hence why we are sitting around cash backing.
Essentially it is a trading play thing between 4.1 and 4.7 ish until we get some sort of news relating to a further investment opportunity or the Bivouac Peak well.
MEL Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
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