commsec research wrap, page-3

Looking back 12 months, what I find intriguing is that AUT was trading at about AUD 3.60 - 3.80 at a time when the AUD:USD fx rate was better than parity (it was about 1.05 around this time last year) and yet AUT is currently trading at about 1 AUD less at a time when the exchange rate has fallen by more than 12% (making AUT's earnings more valuable) after a year of significant increase in production and the proving up of closer spacing and the potential of the Austin Chalk, and after the release of a very bullish ramp-up programme by the operator, which AUT is confident of funding through existing resources and cash flow from production with the prospect of that cash flow fully funding further capex later in the year and the likelihood of interest cost, overhead and debt repayments being funded by production cash flow in the not too distant future after then.

Sorry about that sentence.

There is something wrong with the current price if viewed in the context of the apparent situation. Either there is something further to be told or the price is overdue for a significant correction.