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
Hi TX3I have taken a conservative approach here.The newly formed...
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