I have not met Jim Rodgers. My Managing Director here deals with him in Singapore.
Not planning on selling out, but annoyed at how poor Australian reporting standards are that they do not make a more clear delineation on how companies report reserves and their attributable share of those reserves. Fundamentally I like NDO as a takeover play for the Chinese energy companies in the region. Hmmm....
I still see NDO as part of my core portfolio.
Will see how NDO develops their reserves before changing the number.
In terms of the discount factor. Their last Convertible Bond was done using a 5% risk premium. The risk free rate is 3% as taken from the cash rate that the Reserve Bank of Australia sets. The Beta is taken from Bloomberg.
Basically fingers crossed they prove up more oil reserves. A oil reserve burn rate of 14,400 barrels/day cleans out those fields by 2013.
Thank you for all the feedback. I will do a model on OEL next. I will also tidy this model up for what they actually have, however anyone want to put forward an assumption as to what their reserve increases might be over time?
Kind Regards, Par15
NDO Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)