fllying high, page-2

ODN provides a cheaper entry through its holding of VPE and is currently trading at a 40% discount based on the market price of VPE alone

Errr... no quite. Have a look at their latest qtrly report, and the total no of shares and options issued (quoted and unquoted) = 276mn. At current price of 11.5c, its market cap is 31.7mn.

At VPE's current price of 30c, its market cap is 120mn (taking into account the latest issue to QGC). So ODN's 19% holding is worth 22.8mn, which means the market has actually priced in a value of 8.9mn for the rest of ODN's asset.

Forget about discount. I'd say they are actually trading at a premium to NAV as I don't consider their asset to be worth 8.9mn - at least not until they have drilled a well and establish the prospectivity of those assets. Even using a 10% COS for risk valuation doesn't equate to 8.9mn.

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