Nothing New in Latest Earnings Report
I find today's sell off rather puzzling as I see nothing new in today's report that we didn't already know. The biggest issue seems to be the delay in ramping up production - again - something we already knew. Even the production volumes have remained the same (albeit at the twice reduced level). RBC analyst says the production delay has more to do with delays in getting regulatory approvals than production mishaps. A too rosy view by Management in obtaining them - but hardly a disaster.
In my view the SP appreciation is going to take a few months of positive progress on production and sales contracts. For short term speculators I'd move on but those who have longer term view with this a $3.00 - $5.00 can be achieved eventually - the higher # will depend on the horizontal drilling being successful and its impact on the reserves working out.
I think the recent SP movement is short sellers and those throwing in the towel rather than a change in the fundamentals. In my opinion, my worry is that the Management burn through $ too fast and can't cover with production and need to go to the equity market again - and dilute our shares yet again!
I'd be v. interested in others view of the Company and its future potential - or otherwise!
GLTA