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21/06/15
16:20
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Originally posted by Sector Lead
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I just think you have to keep a really close eye on rev vs production costs and admin in next quarterly.
If the trend is good or at least improving, then the EV is small, but if it's getting eaten away like last 2 quarters, there is no hope unless oil is $80.
Many of these micro ASX listed, US juniors need to join / merge, as they can't support the admin costs/ salaries of listed level. Pumps them dry.
A good example would be joining with like of AKK (Cap $7m). and removing a full set of G&A
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I keep a watchlist of them....
PYM ($5m), AKK ($7m), TEX ($4m), IOG ($4m), SUR ($5m), ELK ($5m), BUR ($1m), GGE ($3m) AOC ($5m) EEG ($7m)
MANY HAVE BEEN DOGS FOR 10 YEARS+
On next level...
ETE ($12m) MKE ($16m) SSN ($19m) PSA ($25m) EMR ($26m) AZZ ($27m) MAD ($49m) AOK ($59m)
Some of these have many synergies and need to get serious about merging in this environment, but one thing they all have in common, is they have burnt through a bunch of shareholder funds for not a lot of return, and that's not counting the dozens that have gone under.
BeST of them imo has been AOK, well managed.
Last edited by
Sector :
21/06/15