gold mountain underneath, page-13

GFA has the right to buy ONLY 50% of the Silver Hill Excluded Area (NPV estimated at $300 million) based on the NPV to be estimated by an independent expert.""


Exactly X Yank, thus the idea of lifting the NPV via drilling results. Bearing in mind, one only speaks of Silver Hill in this regard.



"" If I were GFA, I would consider that owning 100% of CQT would make more sense especially when CQT is considered by our halfwit market to be only worth approx $135m today! GFA already have 20%, so at best they only need to spend another $108m to get the whole thing."""

Marwoode, there's never been a doubt GFA will make a move one day, however an on-market move would rapidly drive the price north, so your assumption of a cheap deal needs to weighed against market reality. That is, the speculative baying hounds would soon come up with a fair TA value and stick out for it. The point is, TA's bring out expert opinion on these things, people who can estimate fair value. Which has nothing to do with punters estimates, who often think the share price is the holy grail, valuation wise.

TA Companies naturally make cheap market overtures for their initial pitch, however these moves tend to quickly sort out real worth - Which in this case has nothing to do with the current share price

The share price is simply an opinion poll, nothing more. Valuation however, is driven by more basic stuff. NPV, for instance, extraction costs, etc.

I'm guessing here, but do think JJ Holdings have done their valuation model in light of a TA. Thus their positioning to make a bundle when the times comes.

Logically if their current holding averages out at less than 40c, which it would, then the current NPV makes for 300% on that. Lift the NPV further with drilling results, and the profits go along for the ride


Now back to the current share price - I do wonder what it will do tomorrow, or maybe the day after !