Australia's largest stock trading and investment forum Australia's #1 stock forum

AJQ

Click for more information

0.00%

10.0¢ armour energy limited

Takeover offer?!, page-42

First 42 Last

Share
Profile

Follow
saintly96

269 Posts.

54

31/08/15

13:43

Post #: 15905413
Share

Originally posted by saintly96 ↑

Gents you can make your own mind up on whether to accept the takeover but lets get the maths right on the "$100m" deal:

They are spending $100m such that in 5 years time they will be the beneficiaries of 75% of that spend - not you. They are basically losing (ie paying) $25m of that for the 75% stake in the tenements in their present form. This values your current 25% stake in those tenements at $8.3m - in 5 years time! do the NPV calculation and depending on your discount rate it is about $7m.

You currently have $8m cash - not the larger figure cited above although this is being pissed away at a rate that will leave it basically gone in 5 years.

At best the other deal values you at $7m for the tenements + $8m in current (though dwindling cash) + $15m or so upfront payment = A$30m.

Westside deal trumps this - gives you access to cash (rather than sitting in a holding company) and removes all risk. Removes the blue sky of course and don't blame those who want to stay in for that - but the idea that you are comparing the Westside deal to '$100m' is incorrect.

Expand

sorry - forgot to convert the $8.3m ($7m discounted) into $A. Brings the total to about $33m

AJQ Price at posting: 6.8¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

NHF

Burgeoning NZ insurance claims drive 1H25 operating loss for nib

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Trump is President Again: What Does This Mean for Crypto?

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

ACW

Actinogen receives $9M R&D tax rebate to fund Alzheimer's trial

There are more pages in this discussion • 97 more messages in this thread...

First 42 Last

Add AJQ (ASX) to my watchlist