value based on eka bid

Remembering that IRR on Mississippi Lime is calculated to be the same as Eagle Ford at around 58%.

Implicitly that means $/acre should be comparable.

So looking at the maths for AUT's bid for EKA I reckon RFE should be $4 by now. Also remember the bid price at $16k / acre is half similar transactions but reflects the fact that AUT is already a substantial holder and doesn't have to pay as big a premium.

If we double the price / acre then RFE should be heading to $8 per share.

Go you good thing :)

Company Shares (m) Price Mkt Cap (m) Cash (m) EV (m) Acres $/Acre
EKA 237 $0.47 $110 $5 $105 6,742 $15,604

RFE 310 $1.10 $339 $37 $302 73,000 $4,143

$1,176 $37 $1,139

Value of RFE using EKA Numbers $3.79