COW Valuation, page-4

Please don't compare Cowan and Tawana share price directly. You need to compare the Market Capital value, and reference that against the resources / costs / cashflow / profits, etc of both companies.

Taking Market Capital alone we have a possibility of something similar to this:

Tawana: AUD$176mil
AMAL: SGD$184mil, 1.01 AUD for every SGD (current exchange)gives about AUD$186mil

100% of Bald Hill (TAW + AMAL) gives a current Market Cap of about AUD ($176 + $186) $362mil

After the Cowan IPO capital raise, assuming $8mil successful raise, gives an approximate Market Capital for Cowan of about $28mil at a share price of 20c.

That means, Cowan is currently priced at about 13x less than Tawana + AMAL combined.

Now you need to do your homework on Cowans resources, costs, profits, time to production, etc, and then you can determine if Cowan is overpriced or underpriced.

Remember, Cowan has 100% of its projects, so we need to consider TAW + AMAL together to get 100% of Bald Hill.

For the record, I agree with @Haplo, Tawana at the moment is underpriced. Based on peer comparisons I would expected Tawana + AMAL to be valued at closer to AUD$1.2 billion or above, not AUD$362 million like it is currently. Meaning I view a 3.5x growth possibility for Tawana + AMAL alone in the current market once the merger completes.

If TAW + AMAL hits 1.2bil, that makes Cowans market capital about 42x less than the combined Bald Hill venture.

I don't think Cowan is overvalued at all. I will be buying when I get the chance!

All IMO, DYOR, etc. Please validate my numbers. This is not investment advice.