Geez l was crapped off today when l saw .33 cents. If anyone had...

Geez l was crapped off today when l saw .33 cents. If anyone had told me that a week after Longtom went into production we'd be sitting at low .30's l'd have laughed, hysterically, Vincent Price kinda style.

There has been much debate regarding Crux and its value. It's interesting that Patterson's value NXS at .53 cents even in the event of NXS walking away from Crux and handing it over to Shell. This was cited as totslly de-risking the company and allowing it to focus on other prospects like Echuca Shoals. Then there is Hartley's report, an extract below, which cites a 35% Crux sale as suring up medium cost commitments with a SP value of $1.50.
So we have some contrarian views here, but either way, .33 cents appears way too cheap. It is hard to see NXS walking away from Crux, l personally doubt this will happen. What remains to be seen, and is of utmost importance, is what devils lie in the details of a Crux partnership.

Value Potential 150cps
Nexus has recently raised $74m in an underwritten rights issue and had cash of
$55m as at the end of June. In combination with the undrawn $46m in project
debt for Longtom, this should more than cover all outgoings prior to a final
investment decision on Crux. We have assumed that the proceeds from a 30%
sale of Longtom and a 35% sale of Crux will cover any expenditure
commitments for the medium term. Under these assumptions, we value Nexus
at 150cps; however, have discounted this heavily in our 6 month price target to
53cps to account for risk associated with the farmout of Crux and poor investor
sentiment. We will look to upgrade our price target as Nexus achieves
additional milestones over the next few months, especially any progress related
to a Crux transaction.