Raise or no raise6 May 2025 08:23
I am totally satisfied that the need for a raise for oil production has passed. The H1 production, yet to be increased, already more than covers the cost of overheads and salaries of the company as stated by MB at the AGM, though the lower price of crude will need the increase on pumped oil rates from H1 to make this certain. MB stated they had cut their cloth and reduced operational costs which is a good sign they will operate within their budget and without the need for a raise. MB also stated they were talking to three entities and they would seek more entities to talk to about a JV. We will see where that goes.
The area that I am less certain of is whether a raise may be necessary for the renewable Sunsteppe business. MB stated they were seeking to maintain a 30% stake in a joint venture business with China that would give a handsome 15% return. He also stated that the project had been somewhat accelerated and was being driven for a speedy construction for an earlier production date. This is good news too.
Whilst there is a degree of funding available from wealth funds, I can imagine a need for some funds to be put into this project from stake holders, including MATD for their 30%. This may present the need for a raise. Let's hope not, but if it did, this would be a raise for return and not for existence. Therefore, in my mind, it would not be a disaster for us shareholders if this was ever needed.
These are just my rambling thoughts for today.
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