Over the last few months the scare tactics used is centered around IOC not having enough money and cash burn. Cash burn is high and management MUST do something about this. Despite Phil Mulacek losing or winning, management needs to address this. I am PISSED at maangement. They are acting self-centered and in my opinion they better shape up or they will be shipped out. Maybe not from Phil, but it will happen eventually if change is not made. If the BOD does not see the cash burn as an issue today, they will be held liable. That is there fiduciary obligation.
HOWEVER, there is a difference between a cash flow statement and a balance sheet. The asset we own is huge. No one, negates that. If we get a payment of 70 to 80 cents/ mcf from Total, the remaining balance of what we own (36.5%) is worth AT LEAST that. Minus any cash obligations IOC has (lets say the 400 million dollar credit line in a year).
Many companies go through this. Especially companies with great assets that have not yet materialized. Think any tech company early on. Facebook, Snapchat, etc. This ship needs to be righted. Management must see that. I would expect this to be addressed at AGM.