Ann: MIN: Redstone's proposal to acquire Atlas Iron, page-37

There is a lot of text above which appears to have bewildered some into thinking it is wisdom.

But it does come through that you are an accountant.

Cash is king, book concepts are often out-dated or of little practical value. Which is also the case for a lot of accountants.

As a starting point, included in your 322M of equity is 268M of mine development costs. Then there is 84M of PPE and a further 63M of tenements.

The 268M of mine development costs are what remain of 800M of actual investment (shareholders funds), since impaired and amortised by 531M.

Yet you think someone today would pay $400M cash for the remaining book equity (before the other balance sheet items) of a loss making miner?

You have confused book equity with value.

Throw in comments around BHP and RIO(!) making a bid, add some lithium and you've people clamouring to reward analysis that if true would mean that annual reports should be cancelled forever (as no-one has bothered to read the balance sheet).