westcott, valuations calculated and comparisons made to FMG before the GFC and plane crash are irrelevant. IMO if that's what you are hanging your hat on you are borderline delusional, and completely unable to assess changing conditions that have affected the ability of SDL to deliver such shareholder value.
The GMP securities valuation based on 45% of Mbalam and Nabeba is all good and well but what happens when there are no other suitors wanting to do a deal with SDL that leaves the company with 45% of those assets? The valuation becomes worthless. The condition that GMP was working off, being a JV which left SDL with a 45% stake, has not eventuated so neither will the valuation. Again, hanging your hat on conditions that do not exist.
Comparisons based on EV's of contained resource do not take into consideration conditions specific to each project. For numerous reasons, SDL would not attract a premium to other porojects that have recently been bid on.
IMO, no, SDL does not have the potential to see $2 per share. SDL can not secure finance so therefore can not unlock the value of the project. The entity that ends up taking the project over and that is able to secure finance might end up being worth $6Bn, but that's not SDL in it's current form with it's current shareholders. Can you understand the difference?
Add to My Watchlist
What is My Watchlist?