Santos's announced takeover of ESG today is a reminder that...

Santos's announced takeover of ESG today is a reminder that undervalued companies will eventually be pounced upon.

In QMN's latest quarterly, they announced that they have 269,000 tonnes of copper (with plenty of upside).

Valuing this at 10 - 15% of in ground value we can deduce the following valuations:

At 10% of in ground value:

269,000 tonnes x $8,000 per tonne (say) x 10% = $215 million.

At 15% of in ground value:

269,000 x $8,000 per tonne (say) x 15% = $322.8 million.

QMN's current undiluted cap is about $28 million ( a far cry from the valuations listed above).

Even if a takeover at double today's share price were made, you don't have to be a mathematician to figure out that a takeover at double today's share price would be a bargain.

We need to remember that QMN's share register is virtually an open book - especially if HR and Tulla agree to a takeover. Note also that the latest cap raining by Tulla was made at 12 cents so any takeover offer would likely be above this level.

With this in mind a warning to option holders - your options may be rendered worthless if a takeover at double today's share price was made today.

Excellent opportunites here for the patient investor. I started buying in last week and will continue to buy at these levels.

Good luck to all holders!!