"Is the $20m MC that you're talking about, the $20m that the Directors are valuing AGC at (which they've detailed in the Prospectus)?
If it is, what if the market says the ground is not worth anything and the $10m cash is $9m after costs ?"
Anything is possible but at IPO/IPO price of 20c:
MC will be: $20M
Cash will be$10M
EV will be $10M
The market can of course value everything at zero post-IPO, just like it could value BHP at zero ( ), but the chances are very slim of those grounds being valued at zero.
AGC and MKR I mentioned because they're both in the area and both were new IPOs within the last 6 months and both have done extremely well - I wasn't comparing their projects/resources to AGC's as ASM is $500M MC and MKR is $100M so clearly they're a lot more advanced as AGC's EV will be $10M.
"For AGC to have a major increase, there needs to be some good drilling results in the near term and with that in mind, the best that could happen for the AGC IPO would be to come up with some confirmations of some of the mineralisation that's been put up in the AGC prospectus. Something like some results from shallow RC holes would be nice!!"
Of course, that's the plan and shouldn't be too hard to repeat what they've hit already at Moorefield with drilling and it should do nicely from there - 3 projects with massive potential being drilled straight after IPO - will be plenty of news.
"What we need now is positive results for MAG from DD and the market to believe that the MC valuation of AGC is correct. "
If/when we get positive results from the Lady Ilse DD, we won't need anything else and you'll never see share prices anywhere as close to the current share price.
At the moment market is saying that there is no "positive"/big results from DD by valuing MAG where it is, and from just Lady Ilse, the market isn't rewarding MAG until it hits that big result, and when it does then we know what happens.
I don't think that they will take too much longer to hit the big one at Lady Ilse, but in the mean/same time we will get company-making shots from Boda South and Kingswood (most likely company-makers imo) as well as other targets (Ninety, Rose Hill, SLR, etc).
See how it goes but it's way too cheap just on the Lady Ilse potential, and then you have the free AGC and its 3 potential company-makers, as well as others from MAG like Boda South, Kingswood, Rose Hill, Ninety, SLR, etc.
The daily SP fluctuations are more annoying than anything and I'll be holding for the big hole (or two) as I've said many times so far.
Cheers,
GB.
MAG Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
), but the chances are very slim of those grounds being valued at zero.
(20min delay)
