Trackers,A quick calc on pre-IPO value.Seed capital (150M x...

Trackers,

A quick calc on pre-IPO value.

Seed capital (150M x $0.20)
IPO capital (150M x $0.50)

But prospectus stated $81.9M would be at bank upon completion of the issue. Obviously some working capital, licensing, legal etc leading into the IPO and remembering DGR were onboard earlier.

So 300M FPOs on listing @ 50c = MC of $150M

less cash, 82M, = EV of $68M

EV/acre = 68/31 = $2.20

So, i have to agree with you and stand corrected that the MC on listing wasn't overly inflated, at least on a peer basis. We know there's more to it than that though i guess. imo a combination of market sentiment and the unusual 50c ipo price was the main cause of the falls. Additionally, while cash at bank reduces the EV, it's essentially 'spent' in the case of a new listing, which i think is different to, for example, buying a JORC'd stock that trades towards cash backing on something as fickle as market sentiment. The Glyde #1 lateral well announcement was a strong derisking event and i don't think we would have ever seen the price fall to these levels if the drilling campaign had have by chance happened a little earlier.

We sit in the fortunate position now, where with positive flow testing we could reach, say, 50c, with minimal additional cash burn between now and then, sit at the IPO MC of $150M with an EV of ~$100M and still only be trading with an EV/acre of $3.20 - still more than 30% below CTP, who are in any case the cheapest EV/acre aside from AJQ already.