Ann: Maari Presentation , page-16

Woofa,

Last years profit doesn't mean that much for a small oiler. This years will be down quite a bit, next years more, and that's before the possibility that always exists with these companies of big write offs or adverse events.

CUE has got itself into the space profitability of an up and down company, and if you look at the average of say the past 5 years profit you get a very different picture than that portrayed by a PE of 5.

CUEs growth is dependent firstly on geological luck, whereas in contrast WPL already has that covered to a large extent, with a lot of resource waiting for development. WPL has very long life assets with reliable output from which to grow. Your comparison is simply invalid.

Seen small oiler PEs of or or 5 before. It means little if it can't be relied on to be sustained.

We saw on the result that BD was indeed priced into the sp. Many of us were simply deceived by BD creeping into the sp at the same time as the rest of the sp was dropping - with market sentiment, and probably on disappointing news from Maari. We just saw a relatively stable sp, then the big drop.

I still like CUE, but it's high risk, and you can pretty well forget about the trailing PE - unless you are an ii fan.

EL