Presumably you haven't heard about Sorby Hill!

First 65 Last

Share
Profile

Follow
Rod55

292 Posts.

34

01/05/16

19:50

Post #: 17646418
Share

Originally posted by Stevienix ↑

Possibly a takeover target but in the absence of finding more feasible ore, what's it really worth?

Do the numbers, 13m trade creditors, 13m note holders, 23m streaming and possibly requiring more funds for exploration...before we assume any price for the shares the EV is already $49m add something for the shareholders...let's say $10m, that gives us an EV of $59m....really? $59m for a company that only has high grade resources to last another 9 months?

So let's skin it back a little, let's accept that the high grade ore is mined and used to reduce the trade creditors to zero...that makes the EV $46m and lets say the note holders convert for a best case scenario of 28.9m shares....that reduces the EV to $36m (remember this is only working on a bid at $10m)

If the company does not find another high grade ore-body and is limited to mine stuff at say 2 grams per tonne the net revenue drops significantly which in turn places pressure on the streaming commitments.

I can't see a takeover at a huge premium....I am also wondering if it was such a great takeover target, why haven't the note holders made a bid...seems to me they have the most to gain and lose from a bid so would make sense if they needed up owning it especially as so many of them are already shareholders!

Expand

Presumably you haven't heard about Sorby Hill!

KBL Price at posting: 1.1¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

OCC

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

SRL

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

PL3

Patagonia looks to raise $2.15M for South American exploration and development

SPR

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

MSB

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%