Further to JT1's response regarding the inherent value in the current sp , you are omitting some very important data.
The proposed figures based on the current vwap that are being bandied around , ( totally hypothetical I might add ), are based on the current published facts. Add to that the discount that is applied compared to other market transactions for similar data.
Now consider this : The current speculation does not take into account the future data that we know is due over the next 4 months or so. It is quite likely ( imo ) that our 2p reserves will at least double in that time and with that will be some pretty impressive flowrates because of the unique coal structure and well design. Obviously if an offer from anyone should come along , this extra data would clearly have to be factored in. I'II let everyone work out their own valuations on that.
So , while I'm comfortable that we would get reasonable value for the resource in any event , my greater concern would be on how management handles that process. In reference to the AOE situation ,( which still provided a pretty good return for just about everyone if you look at a pure capital gain scenario and ignore the what ifs ), ESG's management behaviour in the last couple of years suggests to me that they're working for the shareholders and are not prepared to give the company away cheaply.
We may not have another PES on our hands ( yes I missed that one ) but a handy upside is still likely from here imo.
ESG Price at posting:
84.5¢ Sentiment: Hold Disclosure: Held
