I have recently completed a cashflow analysis for BUY and the results are disturbing.
Over the last 4 quarters, BUY has lost over $1M.
In the last 4 quarters, revenue - opex - admin costs = (-$700K).
In the last 4 quarters, BUY has spent just $300K on exploration.
In the last quarter, BUY lost over $500K.
If the December 24 quarter replicates the September 24 quarter, cash at hand will be down to just $500K
A number of strategic errors have been made IMO.
1. The CR has been left too late - MMR announced it's CR in July 2024. The BOD of BUY should have been aware that any BUY CR would be in competition to the MMR CR due to common SH. MMR's successful raise came in at 70% participation, some of that money may have flowed to BUY instead. BUY should have undertaken it's CR before MMR opended theirs.
2. The share price has deteriorated since the announcement of the September quarterly, falling to parity with the offer and touching lower than the offer. This will reduce participation. The CR should not have been left to the last minute.
3. The Directors have given no indication as to whether they intend to participate. In my opinion, this is unacceptable in a "life or death" CR scenario. How can they expect rank and file SH to shell out their money when the Directors may not.
4. Due to the above, the take up rate is likely struggling. The offer close date has been extended, and the company has now been forced to pay for 3rd party consultants to spruik the offer to SH. The company cannot afford to spend money on consultants.
Given I do not hold, I would be interested to know what SH think would be the most approprite asset to firesale if/when the CR fails?
PEP11 has the issue of Husic refusal hanging over it, so selling at a substantial discount would be probable.
The oilfields produce revenue, but it is marginal, so the price tag on an NPV basis wouldn't be terribly high.
Cerberus/Jacobsen may see a better result as a two drill program is slated for late 2025 and BUY has no way of funding it's share of costs, particularly long lead items.
If an asset sale does not occur, insolvency looks the probable outcome if the CR fails.
JMO. DYOR.
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Last
0.2¢ |
Change
0.000(0.00%) |
Mkt cap ! $3.122M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
16 | 14716769 | 0.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.3¢ | 13971965 | 16 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
16 | 14716769 | 0.002 |
34 | 33099828 | 0.001 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.003 | 13971965 | 16 |
0.004 | 15149223 | 10 |
0.005 | 1565217 | 3 |
0.006 | 2120000 | 1 |
0.007 | 3348912 | 5 |
Last trade - 12.20pm 28/07/2025 (20 minute delay) ? |
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