The stock is overvalued to the tune of 10 m dollars.
Let's be clear - if we use the 7m USD NPV estimate and generously assume that they will recoup this value after drilling 41 wells and they monetiise the gas reserves which this report assumes over the next 5 years - the corporate costs over this period will be in excess of 10 m AUD, thus greater than the 7.5usd they are assumed to extract
can someone explain how this is a viable business
This is akin to running a burger shop that sells burgers at 4 dollars but it costs them 5 dollars to make and 7 dollars if you add rent and utilities . It is flawed on so many levels
I really think anyone who chooses to hold the stock sort of deserve the losses as you can only hold this if you have no financial literacy or are pigheaded or both
AKK Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
