Glossy scheme booklet - quite a bit of marketing to dress this pig up.
Indpendent Experts Report is a complete dog's breakfast. Totally unitelligible jumble of charts and tables and sections that are not organised in any logical manner. Seems to me that they are trying to make sure that shareholders cannot understand their analysis.
I have attempted to interpret it below and it is quite interesting.
Assumptions used to calculate DCF which incorporates hedges:
Discount rate ~10%
SLR mining forecasts:
RED mining forecasts:
Hidden at bottom of page 74:
So based on DCF method the experts value SLR at $1,002 M v RED at $717M!!!!
In other words the scheme consideration is valued at 70.7cents per SLR share based on DCF with the above assumptions including the fact that SLR stops mining ore by July 2028 - in just 4 years.
They then decide using a QMP method more appropriate because after all they have been hired to produce "the Scheme is fair and reasonable to, and in the best interests of, Silver Lake shareholders" statement in the Indepedent Report.
They cross reference it with a sum of their parts analysis done by another indpendent expert SDK which interestingly mid-point values SLR at $438 million and RED at $288 M.
Note that these are only the operating mines and exploration assets and DOES NOT INCLUDE the cash/bullion/debt/hedge positions.
