Hi TX3 I have taken a conservative approach here. The newly formed entity could very well have a book value of $0.22 per share based on 6 billion shares and a combined balance sheet. As for the 2.5 multiplier used on p/bvps. I have used the following: Morningstar P/B ratio for our index shows 2.24 in red 5 valuation screen. Alpha spread site shows our median of 2.5 P/B and slr median at 1.1.
As the two combined forming a new company and possible rerate back to a conservative price based on financial fundamentals, I have only used the balance sheets to derive my result , I think we start at a conservative base value of our new book value x index average of 2.5. It would not take long for our book value to increase dramatically as a result of improved free cash flow and total gold production increased as a combined entity. Go Gold
RED Price at posting:
42.8¢ Sentiment: Buy Disclosure: Held
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