RE:RE:RE:the royalties are a big dragPatience my friend , Athabasca Oil was at 12 cents when negative comment were made two years back about its potential survival and today we are 20x up . I had the BALLS to buy a million n 100k stocks at 14 cents for 154k . FYI I sold half my position at 3.1$ and bought back in again from 2 to 2.2$ . Just Guess what that position is worth today .....
I will see you in 2 years when when its trading around 7-8$ $ if not taken out around 4-6$
ComradeKomissar wrote: Royalties are an uber big drag.
Think about it: how is it possible to generate lower free cash flow in Q2 v Q1, when WTI was 20% higher in Q2? Well, if you look at operating income, they barely managed to eek a mere $18M quarter over quarter. Why? Because the GORR to Burgess ballooned from 8% to 14%. They have already paid them $100M YTD, and are on track to pay them $200M for the full year. For reference: they got about $450M for Burgess, and likely Burgess gets to laugh with a perpetuity of free money at this point. They are ahead of the equity investors, in everything.
Then you have the debt monkey already paid $56M in interest, and $80M in forgone value via the warrants.
This just effed up the "torque". IT IS NOT THERE.
The saving grace: it will be there next year.