Providence Resources - Share price - This share price is being...

This share price is being marked down and does not represent The real value of the Assets. Before the placement the Share Price was 15.3 pence With approximately 145m in issue giving a market cap of approx. 22.185m. Thus with 3m in cash and approximately 24m sterling in liabilities the Company had net liabilities of 21m sterling. Thus 21 + 22.185 gives what Investors considered potential value of assets. Now fast forward to today.Company has approximately 49m dollars after debt payments i.e. 36.75m sterling. This Is worth approximately 6..2 pence a share. Thus at todays closing Price We Are attributing 3.55 pence per share to asset valuation i.e 20.945m sterling as opposed to 43.185m before the placement When company was bankrupt. If we attribute the same 43.185m sterling value to Assets the Share Price should be 6.2 pence (cash valuation) plus 7.3 pence asset valuation i.e 13.5 pence per share. This excludes the fact that the company was bankrupt before the placement and Assets such as Barryroe Would Have had to be sold in a fire sale. It also excludes the drill on Druid plus the updated reserve estimates for Newgrange. So this share appears Very undervalued. Plus the Price of Oil was 37 dollars a barrel as opposed to 50 dollars today.