how does it add up, page-4

It’s not difficult to value – most of the components are quoted elsewhere. What’s difficult is getting near the market price!

a) Mineral Sands : 45% interest in CME.L

A$5m

b) Clean coal : This one’s blue sky and impossible to value. But it’s very early stage and so really you can’t put much value here. Not that anyone has.
But it was bought for 30m shares at around 3c = A$1m and another A$1m raised for its development.

A$2m.

c) Wave Power : The ONLY direct interest in CETO is 1,667,000 (3.68%) shares in CETO’s owner REH.L.

A$2m

d) Residual 1% Pursuit Royalty.

Could be some value here. No turnover to speak of, but PDX.L have a market cap of A$400m. A 1% gross royalty has to be worth more than a 1% shareholding – so let’s say A$8m. Except that PDX appear to disagree that there is a royalty obligation – so at the least there’ll be some legal bills to take off that.

Add it all up

$5m+$2m+$2m+$8m = A$17m.

There is A$33m still to explain in the shareprice – and that’s without discounting the PDX royalty for the dispute or allowing for tax on realising the shareholdings.

Clearly the explanation in the market price is that CNM will be deeply involved in exploiting CETO and its going to be massively lucrative – for CNM. Is this plausible?

Go on shareholders, please tell me why the HOPE of possibly getting contracts to roll out CETO is worth paying A$33m for.