Strike - undervalued despite company-making announcement, page-142

Just want to make the point that we are in agreement here in terms of the long term hidden potential of the company. As previously mentioned, the purpose of my per barrel comparison is to simply provide a direct comparison based on the 2P and 3P+2C to derive at what should be the minimum value for both STX and WGO, bearing in mind the original post was shared immediately after BPT's 20c bid and the purpose was to highlight how low that bid was.

It was also in the Notes/Assumptions that I stated - "STX - This excludes potential upside from high lead drills at Eneabba Deep, Arrino, Kadathinni and Erregulla Deep. It also exclude the enormous future cashflowpotential at Haber, value for which will be crystallised upon signing of binding offtake agreement and finalising project equity sell down."

That said, I do run a hybrid NAV/DCF model for STX (which I have also shared previously) and it has a valuation of 61cps - which isn't far off anyway. As with most financial modelling, it all comes down to the level of risk discounts we apply to developing asset, discount rate/WACC for producing asset/cashflow, and how much "blue sky unknowns" one wants to factor into their valuation. This is the subjective part of the process and it's really dependent on one's risk appetite. I'd personally prefer to value based on known numbers with a low risk discount then the other way because if I am going to wrong, I'd rather be wrong with upside buffer than the other way. Even with my boring conservative valuation, we should be above 45cps.

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