FAR Limited (FAR.AX), mcap=A$76m, price A$0.77 vs A$0.84

$FAR.AX pitch:
– 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.AX valuation:
– 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):
https://www.valueinvestorsclub.com/idea/Far_Limited/9423947778

Published on: September 21, 2022  •  Published by:
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