Originally Posted by
Lion
I decided to do the arithmetic on that question, blackcap. (I mean if there is no amalgamation, which, I agree, seems like a good idea)
An Australian ShareAnalysis article from June this year says a successful strike at Ironbark would have a ‘discovery value’ for NZO of $6.51 a share, for CUE of $1.31 and Beach (BPT) of 40c.
It’s not clear to me whether this discovery value is what the share price might become, or if it is on top of the existing SP.
Taking the lower option, the % increase on yesterday’s prices are 1042% for NZO, a remarkably similar 1048% for CUE and just 15% for Beach.
CUE does have less to lose though if Ironbark is not successful, as they have substantial other producing assets (and a drill result due any day now!)
NZO currently hold half of CUE, too, of course.