Yep - its very simplistic, but if you place zero value on everything else that DGO owns and just value DGO as a shell with 16% ownership of DEG then that implies that 16% of DEG is worth $237.3M at close of trade yesterday, so it would follow logically that if 16% of DEG is worth $237.3M then at that price 100% of DEG corresponds to a theoretical market cap of $1.48B, but over on the DEG threads I can see that DEG closed Friday with a market cap of $1.62B so thats a discrepancy of around $140M. These figures ignore all exploration upside, control premiums that may be paid, changes in metal prices and exchange rates and sentiment etc etc
Now I know there has been a lot of debate about DEG market cap, and if its a little or a lot overblown/overhyped or whether its still cheap, but I think its interesting to think about how the market is operating that has presented this discrepancy.
The fun and games will really begin if and when DGO make their own discovery as the sentiment and market value in DGO will be caught up in its own "discoveries" as well as the 16% stake that they own in DEG itself.
DGO Price at posting:
$3.40 Sentiment: Hold Disclosure: Held
