Gday pj, Im not being flippant about a capital raising.
Re FAR's cash position, at the end of the first quarter FAR had A$51 million with an estimated A$16 million in expenses in the second quarter. So cash at 1 July is approx. A$35 million. The currency has remained pretty much the same at around 75c. So FAR's cash in US$ is approx. $26 million. It doesn't matter where the cash has been sitting the past 6 months, it's still US$26 million.
I have no idea what the cost per well will be, but say (for arguments sake) it is US$60 million, FAR have sufficient fund for 2.5 wells. So they need cash ASAP.
I notice that FAR has traded at 8c all week and it appears someone is keen to keep it there. As can be seen by the props(?) at 7.9c and below. So a 12.5% discount gives a price of 7c. So I have taken the liberty to suggest the capital raising will be at 7c.
Also, a well respected contributor of technical information has become a geopolitical and broker valuation commentator over recent days. It looks like they are promoting FAR. Just an observation, that's all. Stranger things are true.
And we have a presentation just released.
Is an extra A$25 million (US$18 million) enough?
FAR Price at posting:
8.0¢ Sentiment: None Disclosure: Not Held
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