RE: what do you guys think about this 27p price target?8 Jul 2021 07:45
“The Hoards of Mongolia -We have looked at the valuation of the operations through a standard RENAV (Risked Exploration Net Asset Value) derived from discounted cash flow. Using a flat Brent oil price of US55/bbl, we believe that the base Heron development could be worth approximately 9.3 p/share. We have assumed a 50% chance of the company being able to increase Heron’s reserves up to the target level which would add a further 9.4 p/share to the valuation. The risked exploration would then add a further 10.1 p/share to this value. This gives an overall RENAV of 28.7p/share. Investors should view any valuation in the context of their own assessments of the relevant risks. “
This report officially released through RNS,I suspect inhibited the shareprice rise..The market took9.3p as upper limit and when considering development costs dampened the rise.The company surely should be valued higher than the above values.