CLA Under Offer

If you havent seen this yet, it's worth taking a look.

Currently CLA are under offer from SVM (Silvermetals) a 1b MC Co operating out of canada whos main focus is silver and have been expanding their assets to broaden to battery minerals.

The offer is at 3c per share 90% paid in SVM shares and 10% paid in cash. This is for the MCB project alone. The Sagay and Opuwo projects are then being spun off into what will be another listed Co for those two projects with SVM providing some funding and backing it.

With everything taken into account this equates to roughly 4.5c a share for the buyout of CLA.

The NPV (net present value) of MCB alone is estimated around 464 million. MCB is a world class copper asset with a huge resource within the top 10 in the world.

A NPV value of 464 million US equates to a 691m AUD business or 31c per share. FOR MCB ALONE.

The other 2 projects get the total NPV to approximately 700m US I believe or 1b AUD.

Setfire2thehive's general rule of thumb for (FAIR VALUE) S/P as a function of NPV is as follows.
1) SS/PFS performed, no offtakes, no finance = 10-20% of NPV
2) DFS/BFS pilot plant no offtakes no finance = 15-30% of NPV
3) Either of the above with offtakes secured = 25-40%
4) Any of the above with finance secured = 35-50%
5) in construction near term production = 50-75%"

So we are sitting in the 10-20% range currently.

1b AUD NPV of total business equates to 1b/number of shares is close to 50c,
10% of that is 5c,
20% is 10c.

Keep in mind the projected growth of demand in copper is extremely bullish so we should be leaning towards the 20% region.

This gives my fair value understanding currently between 7.5c to 10c a share at the stage we are currently at.

We are being offered at a max 4.5c with hoops to jump through to gain that value through SVM shares, SVM oppies and a spinoff co which could dump on opening.

Im expecting / would not be suprised if other parties step up to the table now to offer something more reasonable, we arent even hitting the 10% NPV mark.

Based on the above I know what my vote will be and I will be looking to accumulate when I can.

Good luck to all involved.

All of the above does not constitute financial advice in any shape or form and is all in my own opinion. As always you should do your own research.


OTB.