Post by
goldbug88 on Apr 25, 2008 3:46pm
EXM/KBR/YLL
KBR owned their 1 project, Monterde, since before EXM even existed and have spent the equivalent of the current market cap of EXM drilling their only project. Furthermore this single project of KBR is low grade and possibly non-economic and has failed. KBR has doubled since Dec. because it fell 70% when their project failed and mamagement was replaced.
Moriarty was not incentivized to visit EXM. He visited the Urique project (100% EXM) that YLL is earning into. YLL would not have been involved in the Urique project, where EXM is the operator (doing the work) were it not for EXM owning the project and offering that opportunity to earn in (ie: pay for the work).
EXM management apparently realizes that 100% of nothing is less than a percentage of something significant and also that 1 project is riskier whereas EXM has spread the risk over a multitude of high potential projects.