mungana ipo priority entitlement to shareholer, page-9

You would have to argue that there is still nothing valued for Admiral Bay or Mungana in KZL's share price. Their market cap is about ~600 mio. Not forgetting they are virtually debt free. There doesn't seem to be any market value for its Lounge Lizard as well or future PE. Lounge Lizard is a really good piece of land, going unnoticed. Market value is more or less covered by its existing operations.

One thing is for profit will grow strongly from now on in.

Pulled out some comments from 2008. Long forgotten in the memory, but something you should be considering now. True there are more shares since then, but they are tightly held with Guangdong Foreign Trade Group. Enough upside to keep your mouth watering...IMO.


Ian Preston at Goldman Sachs gives a clue. In a note on Friday in which Kagara was left on a "hold" recommendation, Preston said he had Admiral Bay worth $1.87 a share in "our upside value of $6.25 a share" for Kagara. Yep that's right, an upside value of $6.25 a share.

Preston's note did not touch on Lounge Lizard, which we know Kagara originally acquired as a juicy bit of exploration ground for $25 million.

It is worth more to Western Areas than anyone else, which leads to the question of what it would be worth to one of the nickel majors, such as BHP Billiton, Xstrata or Norilsk, should they pounce on Western Areas. Something well north of $25 million is a sure bet.