I agree that there will be a takeover premium over and above any valuation method(s) adopted. I believe that there will need to be a reasonable premium to get acceptance of the major shareholders (ie KAH/Polo). The premium will also need to reflect upside on any future drilling - as they are unlikely to have anywhere near completed drilling on the entire resource before any deal is on the table.
Whether the full takeover premium is ever reflected in EXT's share price is debatable - probably not as I believe that there could be a lengthy trading halt as any deal nears finalisation.
With all the drilling happening at the moment I certainly wouldn't expect any analyst to be basing valuations on anything other than known resources - especially since much more will become known within a few months.
I have yet to see anything posted in relation to LE's valuation to have cause for me to consider it way off the mark.
Time will tell.
EXT Price at posting:
$4.65 Sentiment: LT Buy Disclosure: Held
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