"PDY @ this point has a market cap of $35 million and AGU one of $5 million this does not equate to the 70% ....30% JV between the companies. A true reflection PDY being 2.333 times greater than AGU would rate AGU with a market cap around $15 million or a sp around 10 cents..AGU holds its own tenaments 100% as well , this could be a sleeper ?"
Divros, PDY also owns a swag of AGU and YRR so any benefit to either of those companies will push PDY. In effect PDY owns around 75% of the J/V due to their holding in AGU.
As AGU are spending their money on the project, that amount can be taken off the $2m currently held.
It doesn't mean much that AGU hold their own tenements 100% as originally nearly 100% of those tenements were transferred to AGU as applications held by Scook companies which cost AGU many millions of shares to acquire.
As you are no doubt aware, AGU has recently surrendered most of their Haven tenements without ever even exploring them. All of the Blazecape leases have gone as has the Jamora lease. Only the Whitvista land is left out of the Haven swag of tenements. They were only ever acquired to pass ownership of AGU to a select group imo. I won't go into details as I've covered this ground many times.
If the results are good from the iron ore drilling then AGU may initially run harder than PDY but it is currently a one trick pony. PDY has YRR to fall back on. A JORC vanadium/fe/titanium project of significance and a JORC uranium project in the same area are worth more than the hype of what ifs and are more bankable, even if sometimes overlooked.
I currently hold a few AGU and YRR but sold PDY. To me YRR is the best value of the 3 because it has JORC projects (though not likely to run atm for various reasons).
PDY is a close 2nd due to its approximate 19% of YRR and AGU, plus the fe potential. If the fe is good then PDY will easily be the best of the 3. In fact there will probably be a chance to sell PDY and get into YRR at comparable prices if the fe results impress the market.
AGU is a distant 3rd but may spike sharply on positive fe results. It will still be last regardless what the sp does as it doesn't have the assets and the cash will not be enough to prove up much of their other ground. Their best hope will be to J/V some of the NT leases to conserve cash and then try to farm in to an advanced project somewhere. They may win back some credibility from the market in the process. AGU need to break away further from PDY for a real re-rating to take place imo.
They may still run up on good fe news though are likely to be sold down on any sign of strength as those who got the freebies unload. Another 23m shares now able to be dropped on the market at any time as of today.
AGU Price at posting:
3.5¢ Sentiment: None Disclosure: Held
