Opportunity missed, page-59

We have a CR, and existing shareholders are hardly even asked to dip into their pockets, nor does the general market get to buy in, yet the sp is down to 40.

If we’d had a big rights issue at 39 what chance do you think the company would have had of getting it over the line? Had it been even say 30 I suspect the placement buyers who forked out at 39 would now be mopping up the rights at a cent or 2, or the heads around 31.

Oh but they say it’d have been an underwritten rights isssue. Yeah right, what fool would have underwritten at 39? Yes maybe at 30.

I am not expert on CRs, and I would once have said as a purist that a rights issue was the fair way, but as an investor made pragmatic over the years by the market I am adamant that the company has done the right thing. I was a little surprised by the timing but I suspect AC saw the sp drifting regardless of what D3 does (as lets face it its very very unlikely to find another 100 mmbbl of oil) and interest from fickle instos waning.

This has whilst not setting a floor to the sp at least set a lower benchmark. It’s validated a point where some more disciplined investors (vs fickle speculators) see value. An most importantly the cash has given the company enormous flexibility with all it’s projects and with the timing of the next (and I believe the final) CR.

Folk that I not happy now have the choice of paying a meagre 2% over the placement price on market, or they could wait hoping it dips lower, or they could just keep whingeing anyway. Of course they could just ignore Cosmo’s very good post and keep ranting about debt instead.

I am not buying anymore myself, but happy to patiently sit back and wait, knowing this CR has further derisked my long term investment, just as D2 did, and D3 most likely will. Looking forward to B-10 and further exploration as D goes through the derisking process, knowing the company is being prudently managed in ACs safe hands.

EL