LandratInitially i thought AUT buying EKA's land was a slight...

Landrat

Initially i thought AUT buying EKA's land was a slight possibility, but the more i do the math the less attractive it looks for a billion dollar company like AUT with cash flows in excess of $150 million a year. I think AUT has bigger things in mind than a small ~1500 acre purchase.

I also think EKA is better off financially keeping this asset, reserves growth will be the key this year (not to mention production growth). I think the market is really over looking EKA's reserves at the moment, IMO they are trading substantially lower than current 1p reserves. Its important to note that AUT is a step ahead of EKA in released reserves reports, and when accounting for the increase in 1P reserves you get an NPV of around .67c a share for EKA.