Australia's largest stock trading and investment forum Australia's #1 stock forum

ELK MEL

oil slumps to $44.20, page-15

First 15 Last

Share
Profile

Follow
buddy134

23,467 Posts.

110

23/01/15

09:10

Post #: 14628002
Share

Originally posted by doctornoh ↑

Im really curious as to how ERM feel about all this. Im sure they didnt want exposure to US shale oil when they bought in.

In terms of the economics, then given MEL probably think all costs to date are sunk, then they can come in now into this project and provided cash costs of extraction are less than the oil price then they will make money. But we have no idea how they are coming to this conclusion and what their oil price assumption is and how much more capital is required to get to production or when in fact first production actually is.

Rather than shareholder approval per se I want more the comfort of legal procedures in seeking that approval that requires management to spell out exactly how they are cutting the numbers. Disclose the modelling.

Expand

And an Independent Expert Report telling us all the pros and cons of this move pushed forward by the Board, wouldn't go astray either.

Last edited by buddy134: 23/01/15

ELK Price at posting: 3.0¢ Sentiment: None Disclosure: Not Held

MEL Price at posting: 3.8¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

ZNO

Zenith's sale of Develin Creek delivers $975K cash, with shares up 13%

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

TI1

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

HAW

Hastings progressing Yangibana to production with lower costs

The iron ore comeback: Can it last?

There are more pages in this discussion • 5 more messages in this thread...

First 15 Last

Add ELK (ASX) to my watchlist