I cannot see the sp dropping to 1c. Currently the cash in the company amounts to 1.5c per share. It also has proven assets: - Uley with a likely payment in Dec 08 of 250k and good prospects thereafter if the use of graphite in solar power stations continues (I feel this is very likely) where EBR have a 25% free carried stake - Judith gas well in the Gippsland offshore is likely to prove commercial (I think EBR has a 25% stake) but to finance this investment may mean selling it or watering it down. - Venessa gas well in the Cooper basin is also likely to be commercial once a gas processing facility other than Santos is developed in the region (Santos only offer lousy gas prices)
The prospect of this falling to 1c is IMO zero.
EBR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
