sale of zola/bianchi prospects., page-190

Yeah but that cash reduction and debt has gone into manora capital costs which were no doubt presumed by the research (ie the research would have envisioned current cash situation and factored it into the target price). That said I take no notice of such broker reports but just pointing out your analysis justifying current price is flawed. What has changed is a general decline in the value punters are attributing to offshore WA assets. Otherwise the market is just being its unpredictable self. Not liking the period without production accompanied by execution risk on manora until august. Selling by m&g is taking out the weak links and will leave a more robust set of holders when the cash starts to flow later this year. Cashflow from manora over just the first 2 years will cover current enterprise value (including final manora debt). That leaves 8+ of years of Cashflow (albeit reducing over time and taxable) plus whatever value u ascribe to other assets (very little in my investment thesis). Those with patience to wait until the end of the year will be rewarded.