Ann: Trading Halt, page-9

Here is a old post from late march on my assessment on price if the tie up goes through.

Take in consideration that we are currently an explorer with no revenue to a company with revenue and over 20 years of trading, a new MD with lots of experience and contacts within the diamond industry and a strategic direction for the company to move forward.




Hello all TYK holders,
I thought I would do some basic calculations on what the company should be valued at if this Tie-up goes ahead, 60 days from Jan 25th will get a decision by end of March and hopefully an announcement shortly after.
These type of calculations are used on more advanced companies and so may not even be relevant to this, but the company has been operating for over 30 years and so should be able to produce some yearly numbers.

Would also like someone to check my Numbers as I have been known to be wrong on many occasions.


Current shares on offer = 334,770,921
Shares awarded if Tie-up goes ahead = 68,450,000
Total shares after Tie-up = 403,220,921.

First EBITDA performance level is 1.92 mil AU. (I think these performance levels should be quite easily met.)
Most companies are valued @ 8-10 times EBITDA or 10 – 15 forward P/E, but I like to value companies on EBITDA.

8 x 1.9 mil EBITDA = $15,200,000 (with the agreement we get 74% of the company = $11,248,000 - Divided by 403,220,921 shares = share price of 0.027

10 x 1.9mil EBITDA = $19,000,000 (74% of company = $14,060,000
Divided by 403,220,921 shares = share price of 0.034

Add in an acquisition of a diamond producing piece of dirt and where to then.

cheers.