When one does the numbers the truth hits home hard...shows how...

When one does the numbers the truth hits home hard...shows how the average investor will get belted.....Based on 10c (most likely lower????) a share and another 30+milshare issued... ..... the following values show what a dodgy job has been done by directors (or how little our assets are really worth)surely the directors could have acheived a better price from JV than placing it at a massive discount to institutional investors ......

ELK = 10c = $6mil.... issue 30mil shares = 33% of capital..$3milAus cash

current attributed value + institutional investors who take part in the placement will be sold the following assets at the following prices....

SDS = $2milaus...1mil barrels producing 2preserves....
sold for $2bo

Greive = $2mil....12mil barrels recoverable......
sold for 16.5c Aus per barrel.

ELK valued Uluru $2milAus and Kakadu $2.7milAus for 100% =$3.15mil ..based on Nape presentation...sold for $1.5milaus

Ash creek = $.5mil...estimated 6mil+ barrels recoverabl
= sub 10c aus per barrel

For the average investor if ELK had of sold 33% of Grieve for $3milaus (= 75c aus per barrel based on 12mill barrels)then we would only have been diluted on 1 project and not 33% on every project ELK will ever undertake......surely if the chemical flood is a serious project ELK could bring in an investor at 75caus when the futures would point to Grieve averaging around $100aus for the life of the project and I expect sub$30aus production costs.....

Of course maybe 12mil barrels is ballony!!!! but if not it is hard to imagine that ELK could not entice an investor even though the Surtek study has not been finished) at 50cUS a barrel....

Of course the larger the company the more the directors get paid!!!!

RIPPED OFF!!!!