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1.24%

79.5¢ red hawk mining limited

Ann: Flinders signs option agreement with Todd Corporation, page-28

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Anyones guess

457 Posts.

11/05/15

12:33

Post #: 15254586
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Originally posted by PS ↑

Needs some more work on value but some initial figures below (but may not be correct) -

Current MC $41m. Offer MC ~$65m (as some ongoing cost for the guys at the trough)
Pre offer SP 1.5c. Offer of MC ~$65m equates to approx 23.8c share?
Then add value for royalty -
Royalty - 25mt x say $ 0.80 (minimum) = $20m p.a.
Say 10 year mine life then royalty ~ $200m!
FMS retain Canegrass and other none PIOP tenements

So, what should the SP be worth under the offer? Needs a professional to work that out (and the market) but my guess (and only a guess) is $65m + royalties say $265m then maybe 9 - 10 cps??? But some risk? The market obviously does not agree with my guesstimate as still trading under 2c! Would like to hear from others as note sure how to calculate the offer properly. But I would be happy with 9+ cents

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You can't work it out like this. You have to calculate the present value of the royalty stream. If you are assuming $0.80 with a 15% discount rate and 3 years to production and a 10 year mine life the value would be $76m. And 15% discount rate is too optimistic IMO

FMS Price at posting: 1.7¢ Sentiment: Sell Disclosure: Not Held
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(20min delay)
Last 79.5¢		Change -0.010(1.24%)		Mkt cap ! $158.8M

Open	High	Low	Value	Volume
79.5¢	79.5¢	79.5¢	$10	13

Buyers (Bids)

No.	Vol.	Price($)
1	731	72.5¢

Sellers (Offers)

Price($)	Vol.	No.
79.0¢	1350	1

View Market Depth

No.	Vol.	Price($)
1	731	0.725
1	1666	0.720
1	20000	0.680
1	10000	0.650
0	0	0.000

Price($)	Vol.	No.
0.820	337	1
0.825	556	1
0.835	29996	1
0.840	1496	2
0.845	14500	1

Last trade - 10.06am 28/10/2024 (20 minute delay)

RHK (ASX) Chart