it was worth zero, wasn't itmanagement said, hotcopper...

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17/06/21

14:53

Post #: 53902223
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Originally posted by contraindicator: ↑

your thesis applies no value to Goulamina prior to their investment.

imagine Goulamina has 130 million shares on offer currently valued at 20c for approx $26 mill market cap. Goulamina co does a cap raise and raises $130 mill at $1 per share. there are now 260 million shares on issue and Gangfeng paid $1 each.
the company has a Market Cap of $260 mill and has $130 mill in cash to spend on advancing the project. you can choose to say the market cap is $130 mill and that Gangfeng has halved their ownership value to $65 million ie 130 mill shares at 50c each.

If you were in the real world and the company was listed, and a company subscribed for 130 million shares at $1 i would say that the share price would hang around that $1 mark or could surge to $1.10 or $1.20 knowing that Gangfeng was willing to pay $1.
the only way that your figures work is if you ascribe zero value to the project prior to gangfeng investing and zero value to our share after.
Our share is $130 mill and we have $65 mill cash = $195 mill and their share is $130 million and $65 million cash = $195 less the $130 mill they contributed. = $65 million

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it was worth zero, wasn't it
management said, hotcopper posters said.

also a company at 0.20 doesn't usually or doesn't ever raise at 1.00

what's the look through valuation?
cowden used thst terminology

65m usd for 50% seems correct
sprott says 130m usd right?
65m usd for 50%
plus 65m usd cash

FFX Price at posting: 47.5¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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it was worth zero, wasn&apos;t itmanagement said, hotcopper...

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it was worth zero, wasn't itmanagement said, hotcopper...