Unfortunately none of the $2.4mil in net profit/pa actually...

Unfortunately none of the $2.4mil in net profit/pa actually shows up in their audited accounts to 31Mar08 due in large part to foreign exchange losses - it would seem that the bulk of their $A8mil in cash is held in a USD account for some strange reason.This cash is also probably held in their Cayman Islands registered subsidiary - you have to ask yourself why they need such a subsidiary but it has only been registered since the Chinese gained control of Lion.
Unfortunately the 2.5% Working Interest in the Seram JV translates to a 1.5% Net Revenue Interest.
I still think it looks undervalued but this stock is not without its risks.