Well I’d say it adds up a lot better than last time I was...

Well I’d say it adds up a lot better than last time I was asking.

Market cap now A$40m and a CETO exploitation agreement is actually in place. My first impression was that the agreement was very favourable to Carnegie – on reflection I’m not so sure.

Actually – reading CNM’s announcement it seems a bit spun. There’s rather more detail in REH’s version:
http://www.investegate.co.uk/Article.aspx?id=200708100700568623B

So CNM can do what projects it wants but the agreement costs CNM £3m of development funds ($7.5m) and REH gets a 10% free carry in any project and a 2% of capex licence fee up front.

As REH I like it. I like it very much. Heads we both win, tails I still win. As Carnegie I’m not too sure – though there’s a lot to be said for making sure the project overruns by £750k to knock REH’s free carry down to 2.5%.

Anyhow there now is a hook on which to hang the lion’s share of the valuation. Though if one was tempted, there might be something to be said for asking the company to be involved in the inevitable placing rather than buying on market.


May your water be sweet and gush unendingly.