So another elephant in the room that is interesting and worthy...

So another elephant in the room that is interesting and worthy of note is the value that has been given to 10% of Redmoor. Should NAE not retain their 50% for whatever reason, the valuation is approx $584,334 aud for the 10% that SML would recieve.

That gives Redmoor a subscribed current valuation of approx $5,843,340 aud at it's current status. 50% was sold for $1,653,000aud (equates to $330,600 per SML 10%). So the current $584,334 represents a 75.84% increase in valuation since the inception of the JV.

An independent asset valuer, using the Yardstick Method approach valued NAE's exploration asset portfolio in 2015 at around $4.5m. $4.6m was the subscribed value in the 2017 end of year report using another external asset valuer using a similar method. That's all assets and valuations are for accounting purposes.

I'm not sure what method of valuation was used for this 10% or how it was agreed upon as there is no information given as to how they arrived at this number in the announcement, unless there is something I have missed somewhere else that says how they would do future valuations?. We (NAE) also have a consolidated investment cost of $1,674,749 in the JV with SML and a prospective resource upgrade to take into consideration.

So all things considered, is it a fair, reasonable or unfair valuation for us?