flip the bird to hanglong...., page-4

Hey westcott,

we have indeed been the subject of SP manipulation by fundies over the last 12 months, but I still see that E&Y will look at other recent IO transactions and apply similar metrics to SDL position. Which may well be quite independent of where SDL's SP trades at.

But using another valuation metric of in-situ values, based on the current contained tonnes of 1,815Bn, at a, say conservative 1.5% of the spot price of IO, and a IO price of $60 per tonne you are looking at an implied SP of $0.56, at $100 per tonne, you are looking at a implied SP value of $0.93. Or at $120 per tonne, this rises to $1.12 or $130 it goes to $1.22.

And lets not forget the tried and true NPV which may or may not be very reliable for SDL, but grist for the mill nonetheless, which came in at $4.3bn in April 2011. So based on current shares on issue, it implies a value of $1.46 per share.

All very pie in the sky numbers, but these different valuation methods need to be considered to provide a "range" of values possible for this type of transaction.

Pretty funky numbers, but food for thought for EY to discount to their hearts content!

IMO.

HB