FAR (ASX) Senegal surge

Originally posted by cujo: ↑

I doubt very much FID will be the magic bullet for the FAR SP.
In regards to funding and the project moving forward whisky is right, there are processes in place for that.
As PC has said those who are in default of the JOA will simply have to sacrifice part of their share in the project, which he hopes doesn't get to that point.
WPL already have their financial share locked away due to their raising last year and CNE will likely sell down some of theirs to meet its commitments, so that leaves FAR.
Both WPL and CNE have income streams to service any debt and the POO is at a good price but FAR have no income stream for at least 3 years.
When the debt facilities are set up there will be a gradual draw down as the project progresses which means the closer to first oil the more debt incurred and interest.
Servicing that debt will be easy for WPL and CNE and Petrosen but FAR need to live on with no income stream and still have to service that debt.
3 years is a long time and the company still will need working capital for other projects if they choose to proceed with them.
So there will be 2 separate financial commitments ongoing for FAR for 3 years.
Anyone who believes a minnow with 5.6b shares on issue, a penny dreadful SP and massive future financial commitments can navigate this surely is the supreme optimist.

Management cred is at rock bottom so they need to pull a rabbit out the hat IMO.
They got a 6 month extension in the Gambia so they can analyse SAMO results and come up with a forward plan for the permit and that's nearly up so expect some announcement on that front.
I am sure Petronas will have a big say in what happens next as ERIN will not be able to pay their way and that saga could drag on for ever.

FAR for the first time that I can recall are letting their finances run close to the bone as its obviously unpalatable raising money with the obvious massive dilution at these depressed prices.
Management seem to still be in a post SAMO hiatus and all we have seen from them is a couple of shaky videos and a couple of announcements.
How they can remedy this situation is a tough ask IMO as I see no positive catalysts on the horizon.
Tough decisions will need to be made IMO

As I said I thought a buy in average of 8 cents would be a no brainer to make a profit on but now it seems its another FAR trap with the best I am hoping for is a break even scenario with some left field positive news.
Those who say to shareholders that they could have sold at 14 cents and didn't themselves have no credence as they didn't sell for the same reasons the advice is coming from, a successful drill.

You only have to look at little brother to see the difference.
Management in total control.
Fully financed with $94m in the kitty.
3 massive, possibly 4 drills coming up.
Communication second to none.
Both companies with a similar resource but an SP as far removed as you can get from each other.
That's the difference between them and you really have to wonder how its got to this stage.
As for a remedy, I doubt there is one unless we are taken over or a selling of part of the SNE project.

The moral of this story is it pays to pick the right partners.
It pays to get on with them and not hinder them.
It also pays not to over promise and in turn, under deliver.
Also always raise funds at the highest possible price.
I doubt management have grasped that yet as we can all see by the pitiful SP.

Expand

Unless FAR manage to secure development funding soon, the sale of SNE must surely become a priority consideration as it would resolve the most issues and leave FAR with ongoing potential to sell to the markets. SNE would be most valuable at FID time as alluded to by CNE. Put 2 + 2 together...

No.	Vol.	Price($)
2	75664	43.5¢

No.

Vol.

Price($)

75664

43.5¢

Price($)	Vol.	No.
44.5¢	15000	1

Price($)

Vol.

No.

44.5¢

15000

No.	Vol.	Price($)
2	75664	0.435
2	48608	0.430
1	50000	0.425
2	79261	0.420
2	58724	0.415

No.

Vol.

Price($)

75664

0.435

48608

0.430

50000

0.425

79261

0.420

58724

0.415

Price($)	Vol.	No.
0.450	98563	7
0.460	1260	1
0.475	15383	1
0.480	3200	2
0.495	26200	2

Price($)

Vol.

No.

0.450

98563

0.460

1260

0.475

15383

0.480

3200

0.495

26200

(20min delay)
Last 43.5¢		Change 0.000(0.00%)		Mkt cap ! $40.19M

Open	High	Low	Value	Volume
44.0¢	45.0¢	43.5¢	$173.0K	394.6K


Last 44.0¢		Change 0.000 ( 1.15 %)
Open	High	Low	Volume
44.0¢	44.5¢	43.5¢	82596
Last updated 15.10pm 03/05/2024 ?

Unless FAR manage to secure development funding soon, the sale...

Featured News

BPH Energy renews NT Bonaparte Basin permit

Car EV-olution accelerates Oz into pole position

Infini Resources gearing up for UAV geophys survey over Portland Creek

Lithium Universe ends the quarter charged up for Quebec Refinery roll-out

Dancing to that same 70s tune, China, and why I'm backing gold

Why Princeton Professor rates BlinkLab's autism & ADHD screening app

Patagonia shares rise above 20% on lithium grades at maiden well in Argentina

Provident Aurum's off-market bid sends Sihayo shares soaring

Macquarie profits fall 32% on 'market volatility' and low-achieving 'green investments'

Carnarvon revs up for revised Dorado Development

Buyers (Bids)

Sellers (Offers)

Featured News

Unless FAR manage to secure development funding soon, the sale...

Featured News

Top Stories

BPH Energy renews NT Bonaparte Basin permit

Car EV-olution accelerates Oz into pole position

Infini Resources gearing up for UAV geophys survey over Portland Creek

Lithium Universe ends the quarter charged up for Quebec Refinery roll-out

Dancing to that same 70s tune, China, and why I'm backing gold

Why Princeton Professor rates BlinkLab's autism & ADHD screening app

Patagonia shares rise above 20% on lithium grades at maiden well in Argentina

Provident Aurum's off-market bid sends Sihayo shares soaring

Macquarie profits fall 32% on 'market volatility' and low-achieving 'green investments'

Carnarvon revs up for revised Dorado Development

Buyers (Bids)

Sellers (Offers)

Featured News