‘BDO has used what seems a very high discount rate of 11% in its...

‘BDO has used what seems a very high discount rate of 11% in its base case [for Kalkaroo]’

ICYMI in BDO’s IER for AIS dated 26 May 2022 – c. 8 weeks before issuing its IER for Kalkaroo - BDO used a discount rate of 9% for Round Oak’s greenfield asset (Stockman). BDO used a discount rate of 7% for Round Oak’s smaller brownfield assets. See Post #: 61638895 for AIS IER.

For those who are interested, below is a comparison table of selected items from the IERs for HAV and AIS:



Based on BDO data, it seems the OZL-Kalkaroo deal sees HAV leave plenty of value on the table, ranging from ~ $135 million to $335 million at the comparison discount rate of 9%. It is what it is.

In contrast, AIS acquired the Round Oak assets at a premium of ~ $35 million to BDO’s valuation.

Not advice. Vote your own way.

DYOR