Agree with what you have written RoyE.
The offer is 1DCN = 2.7NTM. Currently DCN = 35.5c so NTM share is valued at 13.1c.
NTM has SOI = 693 100 000 and cash $5 215 000 for an EV of $85 914 815.
Its resource is 679 000oz at 1.57g/oz, so EV/oz = $126.59
These calcs don't take into consideration your correct view that high grade is worth more.
MGV share is currently 42c, SOI = 475 000 000, cash = $8 227 000 for an EV = $191 273 000.
Now this is the tricky bit, what is their resource? The last declaration was 659 000oz @ 3.2g/t (Noosa presentation).
So MGV EV/oz = $290.25
NTM/MGV resource grade ratio = 1.57/3.2 = 0.49
So adjusted MGV EV/oz = 0.46 * 290.25 = $142.22 (compared with NTM $126.59).
But... all depends on any resource upgrade from MGV and MGV's resource is twice as high making for cheaper extraction.
Conclusion:
MGV is reasonably priced when comparing with NTM take over price with possible upside news moving MGV to a cheap price.
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Agree with what you have written RoyE.The offer is 1DCN =...
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