Wednesday, 11 September 2013

Coal seam gas miner Metgasco's share price not enthusiastically bouncing back with the change of federal government

This was the official line from coal seam gas exploration and mining company Metgasco Limited on the first trading day after the Coalition won federal government in Australia.

This is how investors responded overall by close of trading on 10 September.

The chart of daily prices over 1 year for security MEL

And this is a selection of shareholder opinions found at Hotcopper:

I was waiting in anticipation for an announcement today due to the Libs/Nats now holding power in the electorate of Page, at a state level and federally. The election result should have served as a green light (as they like to say) for the company to push its case and commit Ian Macfarlane to making gas production in the Northern Rivers priority. It was a prime opportunity for management to come out swinging with the protection of a political safety blanket in place.
Instead we had a defensive nothing announcement that a mate described as a "pretty depressing letter".
To essentially say that there might be something outside of Queensland next year, and that they'll get back to us about NSW in at least a year is absolute tripe. 

And you get no kudos from me for your had to be dragged kicking and screaming as it was to communicate with us. Disgusting display of poor leadership in my opinion, others are free to form their own opinion....

Once upon a time, when there were actually field operations at METGASCO, we critiqued the news is our right, and I recall and engaged in the positive, enthusiastic feedback and discussion, over several years, as our fortunes seemed to ebb and flow.
For those in the company who monitored these threads from time to time to now expect us to write something positive...for the bloody sake of it, after we have been treated so very badly is beyond comprehension.
But we should not be surprised. For some time now the manner of making decisions, and the reactive behaviour to what a proactive management might have handled better...not to forget the questionable recruitment of another board member, when METGASCO is essentially flying in a holding pattern is also frankly beyond comprehension.
It doesn't matter where you've come from, or what your credentials are; if you cannot translate those supposed skills and attributes into meaningful progress satisfactory to the majority of your shareholders then you need to go find a mirror and take a good, hard look into it.

The problem with Mel is its small and has no real influence. They should be running an advert saying we sacked 100 staff due to Barry.
Nonetheless the negligible impact the CSG issue had on the election result will be a plus for us suffering holders.   

We often wonder to ourselves why Metgasco has fancy offices in Sydney with fancy rents. It is a small struggling company and it has to watch every penny, full stop. It has offices in Casino, and the family sees no need for a massively struggling company to waste shareholder funds on indulging in fancy trappings in Sydney.
Perhaps when Metgasco's share price reaches a dollar may be the time to consider a Sydney presence, perhaps a small office in Botany or Matraville perhaps.
But at present it is a small struggling exploratory company that needs to conserve its funds in every way possible, and it cannot afford the indulgence of a Sydney presence.
All business should and must be carried out of Casino. The managers of the Meatworks live in Casino, the managers of the Richmond Dairy live in Casino, the managers of the Richmond Valley Council live in casino, so is it too much to ask the managers of Metgasco why they don't live and work in Casino?
The family has always only read the bottom line in the Profit and Loss Accounting Reports and is ill impressed by statements that a Sydney office is beneficial.
Expensive yes, but beneficial?? Beneficial for what, beneficial for whom???

Meanwhile the opinion of many communities across NSW and in the Northern Rivers remains the same.

On the evening of 11 September 2013 The Sydney Morning Herald reported that; The Australian share market has hit a five-year closing high, as a stream of positive Chinese and local economic data lifts investor spirits. However, Metgasco's share price fell again by -1.59%.

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