valuation discussion thread, page-26

Interestingly - below is an excerpt from the ABN-AMRO broker summary issued on the announcement of the ZFX bid:

"ZFX has stated its offer is high in relation to recent transactions. At A$1.00 AGM is
valued at A$770m. The most recent nickel transaction is Xstrata’s bid for Jubilee,
pricing JBM at A$2.9bn. Last year JBM produced 8,633t of Ni in concentrate,
admittedly down from around 12,000tpa previously. We expect AGM to produce
8,500tpa Ni in conc, compared with 12,000tpa for JBM, a relative value of A$2.0bn or
A$2.66 per AGM share. In terms of resources, JBM has reported 216,000t of
contained Ni in ’high grade’, compared with the 131,000t in AGM’s Avebury resource,
a relative value of A$2.28 per AGM share. That doesn’t make AGM look expensive in
our view; comparatively - back of the envelope - it looks cheap."