Q: Would appreciate your view on the latest quarterly report & the company's outlook.
Thanks
Thanks
5i Research Answer:
EPS loss of 1c missed estimates of (nil). EBITDA of -$8.6M missed estimates by 17%. It had no reported revenue and lost $2.4M. Cash flow was negative $17M. Production increased 21% and operationally things look good. Commercial production was reached last month. There remains lots of risk here, and the stock is down 44% YTD. It might see some tax loss selling. It should show high revenue in the Q4 but is expected to lose money this year and again next year. While we would consider it interesting for the sector, we would not give it a strong endorsement at this time.