DEG launches placement, page-60

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JoseyWales33

493 Posts.

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13/09/20

02:23

Post #: 47297042
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Originally posted by DigDagg ↑

CounterVin, two very good questions. I found this on Wikipedia when I was looking and it is about the best we would be able to find in the absence of a Bloomberg terminal.

"In late 2001, AngloGold made an offer for Normandy, valued at A$1.43 per Normandy share. It subsequently increased this offer by 30 cents per share, but was outbid by Newmont, which offered A$1.70 per share. AngloGold closed its offer on 21 January 2002, not having found sufficient acceptance to warrant an extension.[16] AngloGold's offer was valued at A$3.2 billion, 30% above Normandy's share price at the time.[1]"

In August 2001 the price of gold was about US$215 an ounce but after September 11 the price of gold spiked up to US$285 an ounce. This may have been one factor that prompted Newmont to make the counter bid - the bottom was in. The bid would have been very much higher at today's gold price, probably ten times higher in Australian dollars.

Newcrest had 22.22% of Boddington and AngloGold had 33.33% of Boddington so I am presuming that Normandy had the balance of 44.45% of Boddington.

So, taking all of the above into consideration that makes me think that a hostile takeover might have to be in excess of A$26 a share (based on the A$3.2 billion valuation of the bid for Normandy at A$1.70 a share equaling 1,882,352,941 shares on issue and DEG having only 1,260,000,000 shares on issue - but only if there is 20 million ounces of gold in the ground for DEG. That is the big unknown - how much gold is contained in the ground controlled by DEG?

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Hi @DigDagg
Excellent insight. I sure hope DEG has 20m oz in the ground and can achieve that $26aud...personally I think they just may...that's why i'm here. Just my suspicion/opinion.
We shall see.
I am also curious how you came to that 550 shares to the ounce figure you stated in prior prior reply to CounterVin.

Hi CounterVin

I agree completely. As an investor who was in before the discovery was announced it is now all about how many shares to the ounce of gold. My buy in price was 550 shares to the ounce. Where that figure will be after an official resource estimate is released is the critical figure for which I wait.

@CounterVin put it so eloquently..
Sounds like you are a super happy holder too. Mind educate us a bit on your analysis of shares to ounces and what that means in terms of valuation for an exploration/mining company? Is higher share to ounces valued as more expensive compared to lower share to ounces? Not familiar with this type of calculation so please enlighten us.

Couldn't put the question any better. Thanks in advance
Have a great weekend all.

Cheers

DEG Price at posting: $1.44 Sentiment: Buy Disclosure: Held
13 Upvote

0 Great analysis

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