It doesn't make much difference if you use 5% or 8% or 10% to...

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Davisite

18,857 Posts.

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01/08/19

14:33

Post #: 39812422
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Originally posted by BkrDzn ↑

Just because others use 5% doesn't mean its right or doesn't inflate the value. A pre-tax cash flow is not the value you would see as a sharehodler either. No bidder is going to pay you for tax either.

Thing is, you haven't made any really compelling analysis as to why its not fair and what the fair offer should be. A "I'm long and think this is worth way more because I'm long" claim won't get you anywhere. Everyone long their stock that gets a bid thinks its worth way more and believe they should be paid full value upfront (which implies the bidder buys to make losses). If you get your 10% and actually try and make something happen, you need to thoroughly do your work, analysis, and numbers to make a compelling argument if you want any credibility and to get something done.

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It doesn't make much difference if you use 5% or 8% or 10% to the NPV because the mine life in the DFS is so short.

Nobody is expecting to see the pre-tax cashflow, what they are is expecting to see is a valuation that reflects the value of Rothsay.

I have made plenty of detailed analysis over the time I have been here. I am not sitting still and I am far from alone in being unhappy about the offer.

Everyone has a choice in life - be a doormat or stand up.

Last edited by Davisite: 01/08/19

EGA Price at posting: 33.5¢ Sentiment: Hold Disclosure: Held
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