bby report, page-4

dingletwang,

the targets aren't really a 12 month target.

you will need to look at the base case assumptions and the dcf valuation table in the report to understand.

the latest report has a target of $3.53 and this is at a wacc discount of 13%, an oil price of $65 per barrel and cap raising at the end of the year at $2.75 assuming a 70/30 debt to equity split.

in a couple of weeks they will revise it to approx $4.20 if the demo plant starts successfully because they will probably reduce the wacc discount further and raise the assumed cap raising price to approx $4 etc etc etc.

by the end of the year if all goes well they will be puting out reports with $10+ price targets.

the bby report is pretty good i reckon.

cheers