Spent some time today reading the Independent Expert Report...

Spent some time today reading the Independent Expert Report written by FTI Consulting (announced 10/09/2019) in relation to last years off-market takeover offer by Gandel Metals for 100% of Alliance shares at 14cps.

Its a lengthy document but give a good summary of the Weednanna Gold project (which is the main focus of the company).

At the time of publication, the independent report valued the entire company at approx. $AU ~20-23 million, with the Weednanna gold project contributing approx $AU ~15-18 million of this value (see table below):

This valuation translates to a share price of approx 13.3 - 15.1c (for the entire company).



At the time of publication, the above valuation for the Weednanna gold project was estimated using a DCF model using a gold price of $2,200/oz.

The sensitivity table below illustrates the change in valuation as a function of the gold price:




The table above has been extended to approximate the enterprise value of the Weednanna gold project and the corresponding equity value of Alliance ($ per share), at say, recent gold prices of $AU 2,700/oz (see below).



In my opinion, the independent expert report has also been conservative in some of its assumptions so there is potential room for further upside in the above valuations.

Happy to hear thoughts from others...