Ann: December 2023 Quarterly Report, page-5

I've updated my model to estimate where I reckon EPS will come in for the transition year (6 months) and even on a conservative basis I reckon we come in around 13c, possibly a bit higher depending on production costs.

13c (A$0.18) is for 6 months remember but still comes in at a P/E of about 11, based on only 6 months and no contribution from Who Dat but with the higher shareholding due to the purchase. Still seems significantly undervalued IMO.

As Edson states above, KAR is looking like a massive cashcow.

$170m in cash (after paying for Who Dat. FY24 approved capex is $50-57m. Bauna payment is about $87m. Potentially an additional $100m of capex for the currently unapproved 3 well appraisal / exploration at Who Dat East, West and South.

So total potential capex requirements of $244m of which we already have $170m in the bank. Even with revised down guidance I have EPS of between US$0.34-0.43, which in AUD is $0.48-0.61 representing a P/E of between 3.2 and 4 which seems very undervalued.

Bearing in mind we have only relatively small capital commitments of $244m and $170m in cash, I'm expecting cash generation in FY24 of between $550m-$700m, it just shows how cash generative the business currently is.

I would love a small token dividend for TY23 as I think it will show KAR's transition to a producer will be complete and may just change the markets mind on KAR. It doesn't have to be much. A 5c dividend over 800m shares is about US$40m or even A$0.05 would be good so a bit less than US$30m. I believe they have the short term cash, $170m in cash (with headroom in borrowings) with $87m due out around about now (but there will also be more receipts, there was a cargo loaded on the 31st hence the lower sales numbers for the half (something like 5.5m production, 5m sales was due to timing) and I think they have the cash to pay a small token dividend with a proper dividend policy to be implemented from the HY results for FY24.