Hi TX3
I have taken a conservative approach here.
The newly formed entity could very well have a book value of $0.22 per share based on 6 billion shares and a combined balance sheet.
As for the 2.5 multiplier used on p/bvps.
I have used the following:
Morningstar P/B ratio for our index shows 2.24 in red 5 valuation screen.
Alpha spread site shows our median of 2.5 P/B and slr median at 1.1.
As the two combined forming a new company and possible rerate back to a conservative price based on financial fundamentals, I have only used the balance sheets to derive my result , I think we start at a conservative base value of our new book value x index average of 2.5.
It would not take long for our book value to increase dramatically as a result of improved free cash flow and total gold production increased as a combined
entity.
Go Gold
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37.0¢ |
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Open | High | Low | Value | Volume |
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No. | Vol. | Price($) |
---|---|---|
16 | 1705565 | 36.5¢ |
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Price($) | Vol. | No. |
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37.0¢ | 224749 | 3 |
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11 | 915135 | 0.360 |
13 | 1029633 | 0.355 |
53 | 2672092 | 0.350 |
20 | 1015013 | 0.345 |
Price($) | Vol. | No. |
---|---|---|
0.370 | 224749 | 3 |
0.375 | 2401568 | 21 |
0.380 | 1150151 | 12 |
0.385 | 1040382 | 7 |
0.390 | 443199 | 10 |
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