2ic - Sheffield Thunderbird Vs Strandline Coburn

Hi 2ic, I did not want to raise these points on the Strandline forum as my intention is not to denigrate the Coburn Project but merely outline some aspects of their project metrics that I feel should be highlighted when drawing comparisons to Thunderbird. It is important investors are comparing apples with apples when looking at these two investments.

I note that in most presentations STA only report of PRE tax NPV (8% discount rate) = $705m
Sheffield predominately focuses on a POST tax NPV(8) = $980m for the Thunderbird Project
I had to go looking through the small print to find the comparable POST tax NPV(8) for STA's Coburn Project = $463m

It is also very interesting to note how conservative SFX are with their exchange rate assumptions relative to STA.
SFX use a $0.75 AUD/USD whereas STA has chosen to use the far less realistic $0.70 AUD/USD.
The NPV metrics are highly sensitive to changes in exchange rate assumptions and if we were to compare both projects using the same AUD/USD rate we would see SFX's NPV jump considerably (if using $0.70) or STA's NPV drop considerably (if using $0.75).

With STA just announcing a massive $122m equity raising at $0.205 (discount to market) I have made the following back of the envelope assessment:

Strandline Resources (STA)
Post Tax NPV(8) = $463m (using a $0.70 AUD/USD)
Shares on Issue (Post equity raising) = 1.117bn
Market Capitalisation (at issue price $0.205) = ~ $230m
NPV per share = $0.415
Current price as % of NPV = 49.40%
Implies circa 2x upside

Sheffield Resources (SFX)
Post Tax NPV(8) = $980m (using a $0.75 AUD/USD)
Attributable to SFX (50% JV) = $490m
Shares on Issue = 346m
Market Capitalisation (at $0.39) = ~ $135m
NPV per share = $1.42
Current Price as % of NPV = 27.46%
Implies 3.65x upside

I would be very interested in your thoughts and any other reasons why you appear to have chosen to invest in SFX instead of STA. I imagine your reasons would be far more geologically technical (resource/grade/margins) as I understand these projects differ in many other ways.