Cheers Oceans, and nobody's run the figures they gave us in the Update yesterday so I had a go at it assuming today's PoG at A$1,550/oz for their projected FY production.
Have a look, see if it's flawed anywhere please :-) I did it 2 ways in case Edificia would repay the full A$8.5m only in 2014/15 and none of it in this current yr.
50/50 Split with Edificia = A$13,489,737 Edificia owe $8.5m = A$ 8,500,000 -------------------------------------------------- Cleveland total FY Profit = A$ 21,989,737
OR Working it out on the proper 70/30 split with Edificia until their $8.5M is paid back to CDG
A$26,979,475 @ 70% = A$18,885,632 (Edificia would still owe around $3M to be paid the following year)
Whichever way I look at it (though the crucial factor is obviously the PoG) they would generate A$45M in sales and their cut AFTER ALL EXPENSES (including running the Aus Office) would be somewhere between A$19million - A$22M
Today's m/c of $33m ? Reckon it's a LITTLE undervalued ?
As I said, pls check the figures, think I got it close though :-) Cheers, Aussie
CDG Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held