At least this gives us an update on the financial position and we can see where the directors are basing their valuations when they talk of a take out price of 15c.
They say in the report that Athena is worth more than the carrying value of $64m calculated on a DCF basis. We also get an updated assessment of the liabilities (particularly Gemini and Synergy) so that the net assets divided by the number of shares in issue gives us a price of 14-15c a share.
On the upside Thunderball, Moby and the other permits are not included in this valuation. But on the downside I think we are dreaming if we think we are going to get full value for Athena especially given that two of the wells have been compromised and there will no doubt be further expenditure incurred to get this field pumping at an optimised rate.
I still stick with 10-11c as the most likely take out price if any offers are received.
Would be happy to be proved wrong but in this game I have learnt that it pays to be conservative.
Cheers Mackec
LHD Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
