I personally bought in because I did like Nigeria and Tunisia. Both Somaliland and Tanzania have been acquired since I purchased, which I see both as pure upside.
If they can do a similar farmout of Tanzania as they have with Somaliland, I'll be ecstatic, as these are 2 areas that could ultimately drive the value of the company over the long term.
I like Nigeria for4 exactly the reasons you do not and you seem to fail to realise the benefit of cashflow in this day and age, even for a small explorer.
Cashflow will limit dilution later down the line. If they can get to production with around $3-5m in order to generate around $11m NET in profits each year, then this is absolutely something they should do.
Assuming the next few years are covered in both Somaliland and Tanzania (assuming similar farmout) and once HW-3ST2 is completed successfully (and via a placing) then capex for both Aje full field development and HW development could come from debt facilities, and anything left over from Aje cash less debt payments, is put towards exploration capex on both OML113 and the Bargou block. This is a lower risk method to achieve what they want.
Their are literally hundreds of companies that fail because they do not ensure that they cover their ongoing costs with cashflow and constantly issue shares to then raise funds for exploration. Then you have others that also fail that diversify too much like RRS.
I like the stage that JKA are at, and would love to see Aje being developed to fund exploration going forwards, this is why I invested.
JKA Price at posting:
6.8¢ Sentiment: LT Buy Disclosure: Held
