Most appreciative Overit! Things certainly are coming together,...

Most appreciative Overit! Things certainly are coming together, and although its been frustrating and very slow from time to time, behind the scenes their clearly is a lot going on. Its only we see the occasional announcements that I get interested, but that occasionally announcement is now becoming frequent (lately daily!).

I have continued to ponder the ultimate valuation for SFG, and it really is difficult to predict knowing there still remains considerable permutations to extent and amount of equity held directly in the project, new equity held in the company, and debt (and if NAIF is involved). But rest assured the valuation of PSD is colossal. Based on what Chris Mitchell has been quoted as saying (net profit about 30% of revenue), and with an ultimate gross royalty of around US$1.5 billion = A$2.0 billion) that represents annual profit around A$600 million, which at any PE around 10 represents a price around $4 for 100%! Of course SFG won't be owning 100% of the total project (and of that equity held will be on a larger share capital) it won't , but clearly the company will be seeking at least 50% and assuming its not more than double the shares issued then $1 per share looks pretty interesting. And I suggest that is a very conservative back on the envelope valuation. (Angry Prawn can do much better job of his estimating!).