Originally Posted by
mistaTea
Interesting thoughts fish.
If Ironbark does not result in a discovery, the SP of both Cue and NZO will fall significantly.
Perhaps a reverse takeover by Cue in that case will be on the cards? Net result a larger company just listed on the ASX.
Alternatively, management could distribute the Cue shares among NZO holders, and then liquidate the rest of NZO. Shareholders would still own a piece of Cue, and receive a one-off cash settlement from wrapping up NZO.
I am firmly of the view that Ironbark is NZO's 'last shot' at doing something material. Especially now that Barque and Toroa look like goners.
If we do not discover a significant pool of recoverable hydrocarbons, we simply do not have the size nor resources to start all over again in a meaningful way as we are.
Sale of our Kupe asset should pretty well cover our liquidation costs, management payouts etc. Which would leave ~50M of cash to be returned to shareholders (~30c/share). And then NZO shareholders can decide if they want to keep the Cue shares they receive, or sell them too.
I am still very bullish/optimistic about Ironbark - though I think it behooves one to understand your position on "what next?" in the event that this drill does not succeed.