Shaws predict a 51% price rise for HDR if Ching2 i King Louie,...

Shaws predict a 51% price rise for HDR if Ching2 i King Louie, if Shaw anticipates a 30-50c gain for WPL upon Ching-2s success it means 39c gain for HDR, pushing it to $1.15.

Lets take the midpoint of Shaws 30-50c estimate, and use a 40c estimate in our calculations. WPL has 667m shares on issue so a 40c price rise in WPL equates to an increase in market cap of $266m. WPL has 35% stake in the Mauritanian hunting grounds so each 1% share of Ching will add $7.6m. HDRs 21.6% of Ching would therefore be worth $160m. Divide this by the 415m HDR shares and options on issue gives a net increase in the HDR shareprice of 0.39, ie from 0.76 --> 1.15.

And this would be a starting point for further rises going into the Ching Appraisal and Banda wells. Its going to be a great year.