Hi @dandydonI agree with you that generally the market will...

Hi @dandydon

I agree with you that generally the market will price itself based on the information available and that the market does "not like the farm out deal, at this moment in time, its that simple".

Pre-farmout 40% of the project was worth $42m, post farmout market value currently is around $43m. Cleary the market is not pricing in any value uplift to the project post farmout yet.

1		Pre-farmout 40% value	EV 5.7*40%= m
2	Post farmout value	MC $84- $8.9-$12.2-$20= $42.9m

Beyond that it really comes down to each individuals view on if the project will proceed and if HHR will be part of it. IMO Rock Rose have the resources financially and technically to run the project. If HHR are able to manage their end of the deal and stay then the shares will re-rate as milestones are passed.

If they don't re-rate or keep up then they will either be taken over or will be forced to sell down their 40%. (with neither outcome taking anyone to the moon unfortunately!)

HHR need to be wary of RR. I am pretty confident that RR would have been very happy to take the whole project on had it been available. The sooner they step in as operator, and let HHR step back, the better.