AJL Getting set to jump higher, page-58

The NTA of 7 cents is based on AJ Lucas' net assets of $95 million on December 2020. The balance sheet includes $156 million in exploration assets valued at historical cost. However, AJ Lucas bought the other half of Cuadrilla from Riverstone for a few million dollars last year so the market value of the exploration assets is probably only $10 or $20 million. AJ Lucas's net assets at market value are probably negative.

That said, the company is profitable, even after paying interest on the massive debt. The Australian business provides drilling services to the coal and coal seam gas industries. Both coal and gas prices are roaring ahead so the Australian drilling business should grow over the next few years.