Ann: Quarterly update and outlook - March 2022, page-46

Giving away Dargues would be untenable without a change in senior management. If it were to happen, the market cap. would likely decline based on a lack of confidence in Dan's stated strategy. He needs to direct each dollar towards the best return, while "sweating the assets", as per his presentations.

Shareholders have taken the pain of the dilution and downgrade with this asset, so the benefits of depreciation, cashflow (albeit reduced from previous expectations), and potential prospectivity should arguably be retained.

AMI's other assets are high-quality, and are arguably worthy of a much higher market cap. than the current one. Ord Minnett said in a note that, in its view, Federation on its own is worth more than AMI's market cap. at the moment.

With a mean analyst price target of 76c, some new runs on the board (including a positive Federation FS mid-year) will be needed from management to bring AMI towards fair value.