takeover valuations, page-2

Gimpoo,

I don't consider a reserves comparison with MRE particularly relevant. MRE's valuation is very much constrained by it's near growthless production profile. It could have a trillion tonnes of reserves and I would not value it an extra cent.

In contrast LIM is growing it's production quite rapidly. I weight my value assessment much more on nearterm production than on reserves.

What is really dissapointing about the "premium" for LIM is that it ignores that LIM's sp is on a strong upward trend, and imho was due to most likely cross the bid price in the next quarter, hence...what premuim?

EL