valuation discussion thread, page-73

Andrew,

"(Cash is king and has increased by 15% against the market since they sold Nyrstar.
$2 bill in tha bank earns $140 mill risk free clear profit each year so tell me why they need AGM?)"..


First of all andrew, you have not answered my previous post as yet.

Secondly, if what you say above is the case, what are they (ZFX) doing here???

Please andrew answer me. I own shares in both companies and I nedd to know the answer.

Buddy.

Hi Buddy.
1. i didnt see a previous post from you.
2. ZFX want to buy AGM that is why they are here....but at a reasonable price. there is an impression that zfx want AGM at any price and that is not so. they will not over pay for the asset.
WHile zfx has the money in the bank they are earning significant interest and in this market the cash is increasing in value against the value of shares. ie its purchasing power is increasing daily.
What will AGM add to ZFX in terms of earnings per share?
what profit IBITDA will it add? i will be suprised if its more than 7% based on what they pay for AGM.
so they need to be getting something worthwhile which may be the exploration upside and the savings through synergies.

cheers andrewe