Ann: Contract Award Koodaideri, page-23

The excitement for me is not the size of the contract awarded, but rather the signal that it gives as what to expect - namely more contracts.

Today's FNarena has a summary of brokers' opinions on NWH. See https://mail.google.com/mail/u/0/#inbox/FMfcgxwBVMkklMxmmjmWnwdKvTpdNfld

A target SP is mooted as $2.25, and the contract wins at South Flank, Eliwana and Koodaideri are regarded as harbingers of more to come from those projects. I agree with both of these points.

On the $2,25 mentioned, my crude guesstimate posted on 21/01/19 derived a forecast EPS of $1.1 billion x 7.5% divided by 370.6 shares = 22.3 cents, which at a PER of 10 suggested $2.23. The calculation is so crude that I stuck to my long-held round number of $2.30.

My target price of $2.30 is not a then-I'll-sell target. By the time the SP hits $2.30, I suspect I'll have sufficient new information to calibrate a higher target price.