Problem is 38c makes their recent investment at 43 look not so good. I'm picking we hang around above 40, anything sub 40 you'd have to pounce on. Once the much delayed Peak Deeps gets into gear, we move into the 50s. Dagues is the red herring and from that end, we need a progress update part the way through this quarter. The initial 2 weeks weren't enough to go on and certainly weren't all that flattering. If we were to split the company and remove Dagues for $200 million, then divide Federation and Hera equally, they would be $150 million each based on today's market cap. My calculation on the resource in Federation comes in over $2 billion so it is clearly undervalued. Hera will clearly give us well in excess of $150 million net profit over the next 5 years, and before Great Cobar comes in. 12 months is a reasonable timeframe to reach Ord Minnet's target price.
In response to Joca, the Board has a stated intention of maintaining a dividend, and have not issued any statements since, that would negate this intention. I recently purchased more shares on market. It's a gamble on Dagues, because I believe without Dagues we would be nearer 60c given Dagues seriously diluted prior holdings.
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