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totally correct, and the SP will reflect this eventually in my...

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mazewolf

1,402 Posts.

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22/08/16

13:10

Post #: 18582054
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Originally posted by Squadger ↑

In the Aug 15 Canaccord review, Fig 9: GXY Net Asset Valuation included “Sal de Vida Risked NPV10% A$m 399.3, A$/share 0.22.”
Cannaccord pointed out “Our current model assumptions (for Sal de Vida) are based mostly around the 2013 DFS outcomes.”
Earlier this year (around June) Mr Tse said he expected an increase of 2X to 3X in the NPV of Sal de Vida after the new DFS.
The announcement today was,
“Post-tax NPV of US$1.416 billion at 8% discount rate (real)
Post-tax NPV of US$1.043 billion at 10% discount rate (real) “

This is 2.6 times the Canaccord predictions, which include post GMM takeover share numbers.

Shouldn’t this mean an increase on Canaccord’s 22 cent per share valuation of SdV to 57 cents per share, (at 10% discount rate) implying an increase in the overall GXY target of 65+35 = 100 cents per share?”
Share price has hardly moved -Nobody listening again?

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totally correct, and the SP will reflect this eventually in my opinion, but it usually takes a period of fun and games to begin to factor it in though...and there's still execution risks. But you're right, it's an obvious bargain...

GXY Price at posting: 39.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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