Sunday Thoughts:

Looking at the markets in general it's interesting to see where investors are putting their money which is a direct reflection on why COI's market cap sits where it does.

The likes of pension funds and the retired in general are looking for yield before capital appreciation - as long as the underlying investment keeps up with inflation and the yield is acceptable the investment objective will have been hit.

Views on risk capital investing has changed dramatically outside of the Institutional funds with set investment objectives who still buy in for the longer term. This section of the market is heavily loaded with algorithms churning short term money - the investment objective purely being one whereby the correct prediction of volatility direction is the only investment objective. Geared positions result in massive short term profits/losses and providing the rises and falls in the share price are correctly predicted more often than not - then the gains can be substantial and more attractive to those who accept risk but are looking for capital growth.

We cannot ignore cryptocurrencies as the market cap of the crypto market just topped $3 trillion last week. This market is growing exponentially with it now attracting Institutional money with many early investors sitting on huge gains and much of the tech-savy younger generation now involved. Massive volatility in this market but again even greater gains/losses to be reaped with geared positions and the 'staking' of 'coins' being dressed up as 'yield' with high single figure/low double figure annual returns promised.

I mention the above because hopefully it gives a 'flavour' of why I think COI with all the potential it has - is sitting with such a low market cap and is not attracting investment interest from the market - with it being hugely frustrating for shareholders - especially those of us who bought in during the early days believing that the market would have rewarded us for our patience well before this point.

COI as a company has done nothing wrong in it's approach and objectives. Yes at times things could have been quicker and there's always the moans and groans about how capital is raised and funding is obtained - but we are sitting on a shed-load of gas - our position at Mahalo has strengthened - and we are well on the way to proving that our neighbouring block next door is as important as Mahalo. Add all of this together and even though we currently sit below the radar of 'mass investment eyes' - we are approaching the time when the 'few' will have to sit up and take notice.

The big question is whether we have the ability and the funding to go all the way to production and turn 'potential' into 'yield'. As important are the views of those who are hoping that we will grind to a halt so they can pick us off cheaply - likewise if they let us go too far down the road and production looms ever closer - the cost to them will be greater - thus the balancing act for us and them.

In my opinion there's no way that the likes of Santos will want a minnow like COI pinching what they see as being their market share. Yes they were only too happy for us to take early risks with the downside for them being non existent - when the upside benefited them - but now we must have become a painful thorn in their side in that we are still there - haven't gone away and have strengthened our position - embarrassingly even more so with the block next door.

Short term - I don't see an immediate reward in the market cap as short term rises will be inevitably be sold into which is no more than fallout pain from previous capital raising. However - our pay-day will come when we are taken out - or production is reached - alternatively a hybrid position whereby we are 'free-carried' to production with a lesser percentage of the 'overall'.

Just my thoughts on a Sunday morning for what they are worth...