hoover, page-10

What you forget is that it now has $AUD 37m debt . So you need to add that to the equity market cap to get an EV of $AUD 51m. Which is a lot of money.
Remember they paid $AUD37m for the asset, so the seller thinks that's all it is worth.

Looking at valuation another way, it is too early to put a multiple on the expected revenue, with IMP we know that it spruiks its drilling success, but it never translates into any cash on hand. So market will need proof, or at least a half decent presentation..

I do believe the reason to buy is the macquarie angle. they are experienced in this area, and wouldn't lend that amount of cash for no reason, with embedded options to benefit if the share price flies..

I note the underwritter has turned up with a 20 million sell order to ruin the party..