CJO 0.00% 13.0¢ cerro resources nl

my thoughts, page-16

  1. 160 Posts.
    Cerro's share price is slipping again. Maybe holders are becoming impatient.

    A few quick sales and we will be down to 11c. That is way undervalued to my way of thinking.

    Primero's current price is $C6.10 which is at the lower end of a consistent trading range for the last 3 months.
    The exchange rate is $C1.04649 per $A.
    1 Primero share will be provided for every 0.023 Cerro shares at takeover.
    Cerro shareholders will get 80% of Santana Mineral's (Spinco's) shares with the cash portion alone valued at $0.004 per Cerro share. I can't speculate on the value of the exploration activities that Santana take over.

    Therefore a Cerro share should be worth at least 6.10/1.04649*0.023+0.004 = $0.138. That is quite a bit above the current price of 12.5c.

    Are there any comments from anyone as to what is going on?
 
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