It is fishy as why would someone say i'll increase the offer by 40% with no other news... The deal metrics are poor. They were the first time around and only marginally improved the 2nd time. They learnt with the inclusion of a royalty structure to the deal so they don't look stupid in the future... There is 2.6MOz of Columbian Gold.... Valued at $7.8B using a Au price of $3000/oz...... Fair price would be $130M if the project was in Australia. Discount this by 50% for juristriction you end up with a price around $65M.... I woiuld say $50M is more than acceptable...
Details on the Royalty need to be explained. How long does it last for. Oz of Au produced? if so how many or is it based on tonnes of ore mined..... At least with the RMB royalty you know what it is capped at. It costs either $10.5m when decision to mine is made or you pay 2% net of costs for each oz of Au produced until you've paid back $15m....
i.e.
LCL Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)