jv signed!! , page-48

'Hardman - if they do merge, taking into account the current market cap at 10 cents of about $25 Million, what sort of market cap do you think MNM will be at in 12 months time.'

if they merge then the MC will reflect MNM's coal holdings, and exergen's technology and obvious political and financial firepower as a united business at the heart of the new brown coal pilbara.

The stake taken by the likes of itochu in exergen several years ago valued exergen at $200 million back then. Exergen would be worth more now that now that Tata has green lit the BM demo plant to the tune of $50 million.

if CHTD is proven commercial as a result of the BM demo plant (and if DICE is also shown as a likely key part of the future of brown coal based power generation in Australia at the same time) then the exergen/mnm merged entity will have to be valued as a coal producer and exporter with a vast resource at its disposal, and also as a key local power generation player.

with almost complete vertical integration offered through Tata and Itochu, and the plant cost and infrastructure capex greatly reduced thanks to sedgman/thiess's involvement as exergen co-owners, then the exergen business EV when married to MNM's multi-billion tonne brown coal resource will probably be $1 billion+ on in ground values, and the huge revenue potential of the business.

I hope that MNM shareholders will end up with at least 20% of any merged exergen/mnm entity by the time we get to the production stage.

That kind of modelling implies an equivalent MNM SP of about $1.

DYOR