Several requests for information re’ Urals.
Well where do i start? The whole sad sorry Urals tale reads like a cold war espionage novel.
There’s has been slaughter,butchery and corruption associated with Urals. Run by a rotten corrupt Board who thankfully have been vanquished.
The new man at the helm has had to perform what we here describe as wholesale slaughter just to try and keep them afloat. Debts re-financed, debt for equity swaps, asset sales, cost reductions, board sackings, delisting etc etc, i could go on and on but most of you are well versed and know the tale.
The sad fact of the matter is that Urals where sat on world class assets and to all intents and purposes began over extending their assets/liabilities to such an extent that payments defaulted. At one point this company were trading at well over 400p .
As at present current liabilities out-strip assets by approx’ $32 million. Now at first glance most see this as a real challenge to their survival. Their producing assets are currently being reworked to increase production there in lies the hope. The very fact that the new man has certainly grasped the demons and fought tooth and nail to save Urals bodes well for the future.
Not only has he cast out a rotten board he has also been running a two track survival plan involving a moderate programme of side track drilling/increased production and asset rebuilding with significant debt reduction. Now after speaking to our Eastern European section, their opinion is that Urals lack of credibility at the moment is based on loss of trust from the previous board. Confidence needs to be restored here with the market=ergo Good news.
Please bear in mind that current global economic factors are also playing their part in suppressing this share price.
Will they survive? Well after going through much data the consenus here is that there’s a chance that they could go under but it is more than likely that they are now on the road to recovery and should eventually begin to pick up once good news begins to filter out.
Will 400p ever be reached? Not a chance! Lower your expectations; 10p is the first signal of an SP recovery that will take several years.
A decent punt.