With simple valuation method, say the benefit of no cash contribution till completion of BFS will offset the cash in hand by CNI, 30% of Tanszina project is worth: 29mx30%/70%=12.4m CNI share equ.
Totally GDM has equ. interests in CNI as: 12.4+14.3=26.7m shares.
Its value is: $85m
CNI up $1.99, If GDM tracking the movement, it will be up $53m in market capital.
Fully diluted number of GDM shares is:158.2m
So if tracking CNI, GDM should be up 53/158.2=33.5c.
Which is 52+33.5=85.5c
The market has discount the CNI's value by more than 50%. Maybe people didn't take into account the 30% free carrying interests in Tanzania/Mozambique Project.
At 65c, GDM has negative EV even apply 20% discount on the value of the equity in CNI and UNX, which means core iron ore copper and gold pronect plus the JV with Lonmin, and Royalities in B4M are liabilities!
What a dirty cheap stock!
DYOR>>>>>
GDM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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