sdl valuation, page-23

Aaahhhh, pricing discussions. Determining a price for anything is impossible, let alone an asset/company like this. You can't work it out with formulas - you can try to justify it with formulas, but that means nothing.

Look at a bottle of water - lets go with Mt Franklin. I can pay $1 at Woolies, $2 at corner store, $3 at pub $4 at restaurant, $5 in a hotel room and $6 on Hamilton island. All this for the same bottle of water. Thats a 600% variance on a piddly bottle of water!!!!

The different places i buy this water from dictate to me how much it's "worth" and I make a choice to buy or pass based on how valuable that water is to me at the time. Nobody knows the right price, the right price is the most somebody will pay for it!!!

SDL the company, the assets, the potential, the experienced board and all the other great things this company has to offer can not have a price put on them that everyone will agree with. There is no right price. Take your NPVs, IRRs, Future potential earnings and whatever other techniques you want to use and throw them out the window.

If Hanlong end up taking over SDL - and I still hope they don't but agree that XStrata JV isn't happening anymore for my own reasons - the price they come up with will be enough to satisfy the board that it is fair value in their eyes given the information they know (which is more than everyone on here ..... except probably westcott...)

Holders have to hope if this goes the takeover way that we get Hamilton Island prices and not dirty old woolies prices that they offered us the other day.

Ta,
Beef.