WPL should make a takeover for FAR at $1.25, FAR's cash reserves are currently $50aud million and will be receiving another $75aud million in 2023 from WPL, therefore the total cash reserves of FAR will be about $125aud million. Its a no brainer for WPL to takeover FAR as it will be at FAR's cash backing level and they will get the highly prospective Gambia, Guinea-Bissau and WA-458-P leases for free. FAR cannot continue with its current high risk strategy as it will burn all its funds in the next 2 drills, with a better chance of no success in any up and coming drills. The share price will stay at these prices and may even fall further if no realistic plan to go forward is proposed. CN should be in talks with WPL now, to make a deal for a takeover for $1.25-$1.50.
FAR Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
