new study thread , page-93

re: valuation of bsg prior to listing of warrants VALUATION OF BSG PRIOR TO LISTING OF NEW WARRANTS.

These warrants won't list till later this month, so this valuation will be revised later.

From post 986864, this thread:

PJO will receive CAN$75 mill up front (1st issue) and another CAN$49.33 mill (second issue) later on from half warrants, before costs-See (2).

I am satisfied that the Plant and Mine can be satisfactorily financed while BSG can afford to take up their stake as they had $40 mill on 31 Dec.

Production is envisaged to start early 2007.

2. Current share structure of PJO and BSG stake:
PJO: 81.498 mill shares and 5.780 mill warrants and options, a total of 87.278 mill shares and options/warrants (1).

3. First Issue of warrants: 6.315 mill and 1.578 mill, a total of 7.893 mill.
Second issue: one half warrant per exercised share is: 7.893 mill/2=3.9465 mill warrants. Total warrants from these 2 issues: 11.8395 mill (2).

4. PJO: Total shares, warrants/options:
81.498 mill shares + 5.780 warrants/options (1) + 11.8395 mill warrants (2), a fully diluted total of 99.117 mill shares, warrants/options.
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5. BSG stake in PJO.
Pre-Issue, BSG owns about 79.4% of the PJO shares or 64.71 mill shares. It will prescribe for 2.1032 mill warrants from the first issue and 1.0516 from the second, a total of 3.1548 mill.

It will therefore have a total of 67.865 mill shares and warrants in PJO or 67.865/99.117%= 68.5% in PJO, all fully diluted.
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Valuation opf BSG:
PJO=CAN$10.0 CAN$=$A1.19942

A. PJO has 81.498 mill shares and 5.780 mill warrants and options. Set the value of the warrants/options at CAN$20 mill. Value of shares: CAN$814.98 mill, a sum total of CAN$834.98 mill.(A1)

B. The 2 issues of warrants.
The first =CAN$ 75 mill; the second CAN$49.33 mill. The latter is not due till later, discount by 7%=CAN$45.87 mill, a sum total of CAN$120.87 mill (B1)

C: Add A1+B1=CAN$955.85 mill=$A1146.46 mill.

D. Valuation of BSG (fully diluted):
BSG owns 68.5% of PJO=68.5% of $A1146.46 mill=785.32 mill.

BSG has about 280 mill shares.

The valuation of BSG is $A2.80

Add the value of the 100% owned Mexican properties

Subject to audit,

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.