RE:RE:New coverage ? And conference call nuggetGreat updates Frozen and Bear.
These quarterly reports are hard to read when the only thing up is revenue. What good is Revenue up if it means you just lose more $? Every meter drilled, they just burn out more more inserts/tools and labour. Stop drilling holes that lose money. I know that's an easy armchair quarterback analysis. Their vendors are probably happy though.
I get the whole mobilization and training(M&T) narrative but not sure how they lose money on $50 million Revenue in a quarter. It's shocking. The issue is- even if you negate these M&T costs they barely come back over even.< correct if I am wrong on the M&T costs, maybe it's a lot higher than I read.
I mean pick a number but that gross profit has to bump up $10 million to really get interesting, which means they need another $20/meter across the board. Or reduce costs $20/meter, which seems unlikely in this inflationary environment.
FrozeninOntario always has great insight on all these drillers, check out his posts across the drillers. FIO always gets me pumped up again and reminds me why we arei nvested in the drillers.
Not for the faint of heart!
Disclosure: I own a ton of OGD and I am long. I have been investing OGD since day one and I am sticking around.