straits going places, page-28

Iceydoctor,

You are spot on, the cash of $218 mil actually includes the listed investments. Cash @ Sept is $170 mil with 54% in USD. AUD has been declining against USD since Sept so this amount should have depreciated somewhat, however this may be offset by the US$15 mil sale of GFE.

As SRL does not fully detailed all its listed investments, my research finds investments in Goldminco (71%), Finders (11.2%), VentureX (16.8%), Metallica Minerals (2.15%) and Metal X (4.68%), some which I missed earlier. Based on current prices, the listed investment value would be $56.8 mil.

The way I read it is that $1.72 is net of the sale of SAR, the other coal assets and $50 mil cash. News reports state that the PTT will acquire SARL for $544 mil. So calculation of the deal price is:

SARL (18.2% stake @ S$2.79) - S$574.4 mil
Convert A$ @ forex 0.77 - A$442.3 mil
Other coal assets - $50 mil
Cash - $50 mil
Total - $542.3 mil (close to reported figure)

The restricted cash ($22 mil) I believe relates to guarantee related to performance bonds by SRL. See note 49 annual report.

Reworking my earlier post, the value of cash, listed investments and sale of SARL based on outstanding shares post conversion of CN (304.9 mil shares) is:

SARL sale proceed - $1.72
Cash - $0.56
Listed Investments - $0.19

What is less certain is the tax impact of the $1.72 sale proceed. Even with the maximum tax payment, SRL still offers compelling value.

I suppose the play here is that you get a free bet with SRL. Heads you win, tails you don't lose.

My 2 cents worth.
___________________________________________________________
Please do not construe my opinion above as financial advice as I am not qualified to do so.



___________________________________________________________