RE: Ignore this Board.22 Aug 2025 22:57
🚫 No shareholder value, never has been 🚫
Genuine holders should demand a full investigation into Matad.
1) £180 million spent over the years and very little achieved, a huge difference from what was promised. The accounts should be audited to see if they match up with the operational costs as claimed.
2) There has been numerous operational delays when the CEO having promoted "exclusivity and support" from the Mongolian Government.
Yet, in over 10 years investors are still waiting, for Matad to get their acts together, including the promised work over for H2, and the tax dispute with the Mongolian Government.
The lack of transparency on the issues involved could be a strong case of market misconduct as MATD have constantly reassured investors and promoted the good connections with the Mongolian Government.
In reality, it is the complete opposite and investors were mislead into investing into the false prospect of the company.
Points for reference:
-All of the wild cat drills were off the mark despite investors being advised on 60-70% chance of success.
-5 years to obtain the land permit despite good connections with the Mongolian Government
-Payout to the local environmental protestors for land access were another company mismanagement which has impacted shareholders
-6 months for the export signature
-In what appears to be an over commitment / shift of focus from Heron to Borzon. Investors original bought into the strategy of steadily expanding on the portfolio and becoming a self-funded company.
With Matad without even remedying the Heron field and resolving the tax and Petro China payment issues, the CEO is already committing to a new block. Petro China is still withholding 30% of Matad's revenue from the first oil sale.
The constant bidding of new projects does not go in line with the initial strategy of becoming a self sufficiently funded company. Matad just don't have the funds to be committing to multiple projects. Hence, it has been nothing but placings thought the years.
Intentionally or not, it has been a complete shambles for Matad and all the long term holders have lost money. The outlook is grim and trust is gone. Issues and uncertainties remains around the company's forecasted oil production and revenue. The strategy is poor and Matad have lost sight of the focus. They are over committing despite continued failure to bring on a revenue stream.
Meanwhile, they are splashing cash here and there, eg: Gobi, a well that has previously been declared commercial non-viable with no oil show. In that case, why spend another few millions on it.
It's evident that there were never any shareholder value. The company's intent were never about that. It's more about the BODs keeping their own pay cheques and shareholders will be further diluted each year.
All in my opinion and DYOR
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