Based on the SFR published Feasability study, with a Pre tax NPV...

Based on the SFR published Feasability study, with a Pre tax NPV of $1.3B, shares and options (incl OZL's holding) of 160.3m, discounting the NPV for tax, gives an intrinsic value of $6.19 per share.

If OZL were to go after SFR, then the sp would need to be $4.77 or lower, so that the 30% t/o premium is not above the intrinsic value.

$6.19 t/o share price * (149m shares - OZL holding + options) = $819m

This would use up the cash for M & A, and OZL may need to go into debt to fund the mine initially, but I have no problems with this.

Thoughts?

HT1