RE: Good price to buy now but could be better to wait another few days?25 Jun 2023 12:58
The problem of course is not the resource but how much it costs to monetise. In the case of XEL they had plenty of already established oil, but it was heavy oil. And although the technology had improved since the 70s the ocean depth, weather and costs of FPSOs, tankers and running a rig was just too much, paired with bad management it was, sadly a failure.
Just with mining, resources mean nothing until they can be used to create profit. The journey to that point is what makes or breaks a company.
Although Art has created much doubt in his leadership and methods it does seem very clear that all that is needed to be done is being done to achieve what’s needed.
Resources proven, infrastructure improving, flaring permits agreed, ownership established.
The important thing here is understanding that production is low, because the equipment needed for extraction cannot handle the load. The issues have come from substandard engineering.
This has put the company on a thin line. Which is also why I’m against the pay rises at this stage.. but hey ho.
BUT production improving is key and it does very much seem to be going that way.
As soon as this company becomes self sustaining and producing into profit things should and will take a drastic turn for the better!
We continue to hope.
Have a great remainder of the weekend all.