Just considering a little further at what level a capital raising may occur if one eventuates.
The half year NTA figure including water rights at cost was $1.11.
Management has estimated water rights value at 300M and they are on the books at 230M.
Freehold land at 31/6/2016was 123M. A 10% increase would be approx. 10M
There is currently 360M shares on Issue.
10M land revaluation + 70Million water rights revaluation across 360M SOI adds 22cents to the NTA figure. Add a bit more for current half year operational cashflows and you are sitting somewhere around $1.35-$1.40 NTA.
The Motspur transaction with Peter Joy a true inside associate was done with a 50% equity component @ $1.45. The cash component from this transaction would be a convenient way to fund his rights if a raising was to occur.
Potential raising price could be a bit higher than my previous $1.15 guess. Current price might be about the vicinity – May have been what drove the release of harvest information. Telling us what’s going on with harvest hasn’t been in their DNA previously.
WBA Price at posting:
$1.28 Sentiment: Buy Disclosure: Held
