I totally agree on the prospective income...any sale has to treated income from PSD as not in existence.
The only turnkey operation it offers is as a cattle station. Currently operating as a cattle station managed by Cameron and Belinda Rasheed and it is carrying in excess of 50,000 head of cattle (Braham's I think). The stock carrying capacity of Legune Station is better than near proximity stations as it is up near 2.5 beasts/hectare and this is due to pasture and water. The water is from an earth dam (Forsyth Creek) and there was a proposed second one (Bluey's Pocket Dam) but not sure if the second one proceeded. the first one also has some seepage issues but I don't know to what extent or damage it is causing.
PSD is a project in its infant stages and would need to be substantially progressed before it has any intrinsic value for a buyer. Right now it is a "possibility with risk and cost" at best.
If SFG exercises the right to acquire under the current agreement then it suddenly becomes eminently more viable and also comes with a turnkey revenue plus management team and trading operations (i.e. existing revenue).
I cannot fathom why they are seeking to exit the property after all this time and effort and shareholders funds have been spent. Something is not quite right and given the Bod track record it must be somewhat disconcerting for shareholders.
SFG Price at posting:
6.2¢ Sentiment: None Disclosure: Not Held
