The price to book valuation is worth looking at in more depth given the Hidden Gems.
$54.7m is just scratching the surface
Book Value $54.7
Future tax benefits $70m
Franking credits $17m
Land and buildings revaluation ??? conservatively circa $5m
Plant and equipment revaluation to replacement cost circa $200m
Increase in cash due to CR $10m
Total value $356.7m x 3 = $1070m MC target. Now thats a nicer number to dream about. We would romp into the Top 300.
Regarding land and buildings it is probably not well known that in 2019 the land area occupied by the giant pit and associated mining operations was rezoned for industrial use in association with the the conditional sale of the giant pit to AGL for a Pumped Hydroelectric Scheme for $30m.
This had the added benefit of removing the requirement for HGO to demolish all the buildings and other infrastructure and rehabilitate the areas they occupied.
When all the mining is done and the plant is shifted to a new location probably in the SE tenements the owned land will be a great site for a Pumped Hydro and associated Solar Panel Farm because of its connection to the grid and proximity to Adelaide.
The existing buildings will be recyclable into associated industrial uses.
Walking away from a mining operation with a valuable suite of assets instead of massive rehabilitation cost is just another hidden gem in our
Hidden
Gem
Opportunity.
