going long, page-8

Not sure that you can rely on the NTA of $0.69 as this includes some intangible assets. In the Dec 2013 half year report there was still $59.459m in non-current intangible assets (after the impairment charges recorded in the p&l for the same period). Intangible assets are not hard assets so may not have any value in a firesale type situation so a more conservative approach is to assign a zero value to these when looking at the balance sheet. Also you need to be careful when looking at the other assets on the balance sheet as the actual value that these would realise may be dependent on how the valuations were derived by the company and their accountants/valuers (for example issues such as how often are the assets valued independently and can they be affected by other factors which can be quite broad and multifaceted - i.e. the exchange rate, fuel price, second hand markets etc.). The realised values of assets can be quite different between whether or not it is a going concern sale or firesale - in a firesale situation the realised prices will generally be lower that compared to a going concern. My initial thoughts are that it is more important to look at the profitability of the business before relying on the value of NTA (although both should be considered).