Price Moves & The Way Forward6 Mar 2020 17:33
2.154M volume showing on lse and a fairly significant drop in the price, against a backdrop of some turmoil in the wider markets.
A few interesting points bought up, including that of a limited placing. I think we can generally accept that 'may' be on the cards in some form, Mike Buck already stating that it 'may' make up part of the limited financing needed to progress operations until PetroMatad are cash generative through Heron etc.
It remains to be seen what price that would be at, if indeed it is required and how much of the complete funding it would make up - the potential Partnership is also on the cards, again stated by Mike Buck, hence we can't necessarily acknowledge one whilst completely dismissing the other, imo, albeit we'll all assess yje likelihoods of each scenario playing out.
Either way, any funding requirements would be relatively limited and open up the way to progress operations and hence provide the platform for share price appreciation going forward - in other words, it'll be a huge positive for the Company overall.
The Exploitation License is the bigger factor, imo, as the Heron1 asset should make any funding fairly straightforward in the context of such things.
It'll be a huge catalyst for the share price and indeed, has strong underlying support from thr Mongolian Govt and works into the wider aims towards greater reliance on domestic production.
This stock is somewhat unloved but has huge potential locked into it and awaiting the Exploitation License to catalyse the major build up of the share price - we've been told it should be with us by the end of Q1 2020, so let's see how that plays out and within the usual caveats for Aim stocks.
One thing we have noted, is that the share price here moves on relatively little volume, hence todays drop although disappointing, can also be reversed in a blink also and as we saw the orevious 29% rise on the day.
Do your own independent research.
Have a great weekend all
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