loi for deep hole drilling contract ..., page-27

Hi NSW!...$14M?...looking at Patersons Report...the BEST CASE scenario is an EBIT of $12.44M..this is Gross profit and then you have to SUBTRACT 12.5% of EBITDA for Warren's cut,interest[ie that paid to Noteholders if they don't convert] and Company tax[30%?] as well as OVERHEADS....So what does that then leave the NETT Bottom line...then you consider at what the market will accept as a P/E[I reckon 8 at best at this early stage] to strike a cap price and hence SP......do your sums...It doesn't hit 30c/share even under their BEST CASE scenario....always IMO...LEE