RE:RE:with a float this tight charts and prebid etc mean zeroBonterra cannot pay a dividend until the government loan is paid back, and according to December guidance, it appears that they are focusing on paying down the bank debt first, then they will tackle the government loan.
My opinion is that token dividends are pointless while there is meaningful debt on the balance sheet. Every last cent of free cashflow should go to paying down the debt so that when the price of oil retreats, we are well positioned. Pay down the debt, then we no longer have to deal with usupius bank loans or restrictive government loans.
Because of Bonterra's unquiely low float, we free cashflow almost $2 a share at $60 oil. These oil prices won't last and if you cannot pay down debt at near $100 oil, then what is the point of existing.
For example, look at Suncor. Constant buybacks, dividend increases... and they can't even meet their own net debt reduction targets. Completely irresponsible in this price environment.
Lot of names out there have grand plans for $85, $90 and $100 oil, but what is your plan when oil is back at $60? So many of these names out there have years and years of maximum buybacks to get their earnings per share anywhere close to where Bonterra's already is. With our low cost of production, long reserve life and low float - we can pump cash out of the ground at $60 - we just gotta focus on the debt here and now.