Needs some more work on value but some initial figures below (but may not be correct) -
Current MC $41m. Offer MC ~$65m (as some ongoing cost for the guys at the trough)
Pre offer SP 1.5c. Offer of MC ~$65m equates to approx 23.8c share?
Then add value for royalty -
Royalty - 25mt x say $ 0.80 (minimum) = $20m p.a.
Say 10 year mine life then royalty ~ $200m!
FMS retain Canegrass and other none PIOP tenements
So, what should the SP be worth under the offer? Needs a professional to work that out (and the market) but my guess (and only a guess) is $65m + royalties say $265m then maybe 9 - 10 cps??? But some risk? The market obviously does not agree with my guesstimate as still trading under 2c! Would like to hear from others as note sure how to calculate the offer properly. But I would be happy with 9+ cents
FMS Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
