re: tiof I am not sure if this has already been discussed, as there has been so many HDR postings.
Has the Woodside presentation had an impact on the HDR share price? If TIOF gets the commercial go ahead later this year then HDR will need to have access to an additional $200-250 million, asuming a total project cost of apprx $1,000 million. On the basis of at least 50% of this being equity, then HDR will need to raise another $125 million either later this year or early next year. This would probably be as a combination of a rights issue plus new equity, at a price below the current trading level(or sale of some more equity to BG)
The bigger "sophisticated" shareholders can sell some of their current equity at a profit, knowing they will be able to buy back in at a lower price.
At the very least, if there is the potential for further equity raising in the near term, this will act as a dampener on the price the bigger institutions will be prepared to pay. Based on the volumes being traded, they are controlling the share price.
HDR
hardman resources limited
