Sante, it is not only the 8m TBR shares, the size of the vend,...

Sante, it is not only the 8m TBR shares, the size of the vend, into a company with at least some $130m in real assets, is the injustice and if the vend does go ahead , I believe a class action similar to AMP/GIO or even what is being contemplated with Lynas--see smh today--http://www.smh.com.au/business/legal-action-threat-rises-over-lynas-sale-20110417-1djon.html. Or there are many other similar cases by shareholders taking actions against the company and its directors.

At least we know, and more importantly the lawyers know, there is money/aseets in the company to get recompensed or paid out, if we win.

My estimate of Value for RND

Assumption 1 PE of 1
Tribune shares (12m) at today's price.
Gold held at cost


On the 1/10/10 RND released its annual report
Page 5 states they produced 18,334 ounces of gold
Page 23 states revenue from operations was $15.2m resulting in an NPBT of $5.6m
Yet if they had sold all the gold at say $1400 per ounce then revenues would have been around $25.5m which should have resulting in NPBT being calculated at $15.9m.---the difference today is held in gold at COST.

So PE 1 npbt $5.6m
TBR @ $2.64 $31.5m
Au @ cost $7.5m

Total $44.6m

Around $0.70 fully diluted--including 4m options



Now assume only a PE of 3---on what earnings should be if we sold all our gold as we produced it, TBR at enterprise value and gold at spot price.

On the 1/10/10 RND released its annual report
Page 5 states they produced 18,334 ounces of gold
Page 23 states revenue from operations was $15.2m resulting in an NPBT of $5.6m
Yet if they had sold all the gold at say $1400 per ounce then revenues would have been around $25.5m which should have resulting in NPBT being calculated at $15.9m.---the difference today is held in gold at COST.



So PE 3 $47.7m
TBR @ $5 $60m
AU at spot $15m

Total $122.7m

Around $2.00 per share

So easy to hide value by different--legal--accounting methods.

If after the vend RND does not show such a proforma value ---on day 1--- I believe we will have a class action case.

But time will tell.

Also the market tells me there is something wrong, because everyone is stalemated, as you cannot sell because the stock is so cheap,---yet you cannot buy because if the deal goes ahead you are so diluted.


PS I only used a PE of 3 when there are many example of valuations of other companies at a substantially higher PE than this.. DYOR