BRZ currently cheapest entry into MSB JV, page-27

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inside2020

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11/07/18

15:50

Post #: 34279944
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Originally posted by Lithospeaks ↑

LPI EV = circa $54m for 51% of Maricunga
BRZ EV = circa $19M for 18% of Maricunga

So your numbers are wrong - and a minority position should always trade at a significant discount to the main game - atm BRZ is trading at a premium to LPI SP.

Please note BRZ has no control at all. Both Chilean MSB directors have joined LPI to show alignment

Furthermore - BRZ has next to no cash after they pay the $500,000 -BRZ placement soon? otherwise they won’t be able to contribute on further developments - therefore will be diluted

The only hope BRZ has is MSB was taken out with a cash bid from a major before any further development capital is required - otherwise LPI is the vehicle and the minority holders always come back to the majority - fairly or unfairly

QUOTE="Skattie11, post: 34265535, member: 476527"]Interesting development over the past month. BRZ has gone from a 25% discount to a 30% premium relative to LPI. Implied Maricunga valuation is now over $100m and climbing. Whilst the volumes aren’t huge it’s encouraging.

With LPI looking to potentially unbundle its WA exploration assets and become a clean holding shell the implied Maricunga valuation within the company relative to BRZ should revert towards par. There is some selling resistance at 33c, hopefully LPI rises to narrow the discount to BRZ. Maricunga Parity = 34c

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Your calculations should be redone when the announced spinout at BRZ
is completed.
Only then you can see the rating of Maricunga ( in BRZ ).
The last and relevant news will follow this week

LPI Price at posting: 30.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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