Morning mate.. 2p would be a nice lovely price to see in the short term.. From what you know and gathered from the BOD what news u reckon we can possibly expect within the next 2 weeks? The reserves upgrade certainly catches my eye the most. Its looking real mouth watering right now especially when u can top up @ 0.7399 :)
E1ite's earlier post has set me thinking. As E1ite points out the Kiliwani revenue stream is, within the contracted timeframe, unlikely to fund future drilling commitments. There is also the matter of servicing the Argo debt and meeting the July '15 repayment deadline. The point has also been made that Aminex has become a one country operator and will now be very much dependent for its cashflows on the price paid for the Kiliwani gas and on the terms of (and, crucially the timeliness) of the payments. Furthermore unless drill-ready prospects of compelling potential are discovered a farmout to a deep-pocketed partner on attractive terms is unlikely. The Board is also faced with the dilemma that the Company is simply too small to go it alone and in its desperation to court a wealthy partner it surrenders too much of the equity. Perhaps the Company is being set up for an outright sale at an opportune time. It doesn't have the financial staying power to grow organically given the size of its likely commitments and its own resources; at least it is difficult to envisage this happening. It could, given a steady stream of good news, keep returning to the market for regular cash-calls but this would also serve to dilute existing holders. With the directors and senior managers being significant holders this strategy is somewhat less likely than it might otherwise be. Private investors spurned the opportunity to subscribe to the Open Offer but looked on with bemused puzzlement at the apparent eagerness with which the Placing had been taken up. Given the less than compelling case for the long-term (and undiluted) prospects of the Company you have to conclude that they, the Placees, indeed do know something we don't or (and perhaps more likely) a short-term and worthwhile pay day is in prospect.
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