Looking at the financials . . . If you subtract energy and one offs, their half year might be about $3.7m, and double that to 7.4m NPAT roughly. Then also their admin costs will be much bigger than necessary with the ditching of energy - so you might get it to 8.4m or so. That is a PE of about 5.5x ATM. The minerals division's revenues are holding up even in this perfect storm. Then they may have no debt as well if they get a great sale price, but even if not, they will quickly pay down the residual of their $40m of significantly misadventure debt. You might value such a co at PE 14x or more, as it is a successful company with a long track record of growth in the minerals div. Then you might collect growing dividends until the next minerals boom when you can sell, or not, for a Disallowed or more (if you live that long???)
All IMO only - even before the energy divisions are sold, the market might gradually recognise what is happening here. Good luck to holders.
It is a bit like the adventure at AOG when they got out of property development, and stuck to retirement - that one has been a multi bagger for me, as I took advantage of all of the discounted crap raises along the way.
IMD Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
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