– Potential liquidation: busted oil exploration junior now in quasi-runoff mode, offering at least a ~35% gross return and potentially a ~69% IRR over a likely 12-month period.
– The wind-up has not been formally announced, but all signs are there.
– Cash covers 58% of the market cap and the remaining upside/value comes from earnout on the previous asset sale.
– The earnout is very likely to pay out fully by mid-2025 or management will find a way to monetize it earlier.
– FAR consists of A$38m in cash, $42m in estimated discounted earnout from the previous sale, and Gambia assets at $3m.
– In total that adds up to A$1.12/share.
Exp. gain: +35%to $A1.12
Full FAR.AX write-up (free guest account required):