Seals, hiThe IRR on Sandpiper (even with Mr Jordinson's inflated...

Seals, hi
The IRR on Sandpiper (even with Mr Jordinson's inflated up front capital costs) is really very good (although he needs to knock off $80m, which I guess is what Mawarid will do the moment they have cleared us out - something Jordinson is actively helping his new boss to do - why else do I suddenly start getting "Dear Frank ...from UCL Resources". You only have to look at Sunkar Resources and their feasiblity study on the Chilisai project in Kazakhstan. It is truly horrible: 14% or something, and it needs about $1.5bn from memory. The offer is far too low on Sandpiper, simply because when the last permitting hindrance is crossed (the shares have to rise to reflect the fabulous cash flows that are going to come from rapid development of Sandpiper (yes, I know there are some companies on the ASX that are going down despite proximity of cash flows and a change of status from explorer to producer) but our cash flows will not simply rocket EBITDA but add to shareholder funds i.e. have a decent NPAT fairly quickly.

On your point:

"you can't make the market put a price on something it does not value at all."

I agree I can't, but Jordinson certainly can if only he would do his job properly. There is even another company besides Calunius Capital that funds arbtrations. See Juridica Investments Ltd.

http://www.juridica.co.uk/investments.php

Jordinson should just put in a claim for lost earnings and impairment of value of the business calculated on a DCF basis. With some decent accountants he could easily put in a claim for hundreds of millions of dollars just to get back twice the book value of Mehdiabad he wrote off. I presume this is exactly what Mawarid will now do. Mawarid are making an absolute packet out of us. Jordinson has been working for them all along. Why else did create that sham production agreement, one which he could not talk about. It is hard not to laugh. I you knew how corrupt the Iranians were, he can get them to cooperate on anything to get the mine to pass to Mawarid if that's what they want. The "Independent Report" from Grant Thornton will not reflect an understanding of how asset values of things like Mehdiabad can 30x times in no time at all. Jordinson is just doing
Mawarid's bidding in my view. The Iranians are serial liars; that is never a reason to dislike them; it is not something which is unique to Iran; it isn't that we are better for lying less frequently; it certainly isn't always their fault and it does not have to be a problem: it is just a reason to be circumspect in dealing with them sometimes, lovely people that they are. I expect all this will completely pass over the heads of Grant Thornton. Jordinson has never shown any mastery of anything to do with Iran, if you go by his past reports.

I couldn't really give a toss whether I three bag my money staying in this thing or whether I three bag on something else - and god knows there are zillions stocks going down all over the place that could recover very sharply. I have no idea what I will do (except I may put in a complaint about our Board, well the so called "Independent" Members of it. Jordinson's Judas money (those options) is something else though. Anyway I will have to leave it there. I remain of the view the whole Middle East will be radically different by the end of the year, and that the whole business climate in Iran could be very much better than it currently is.