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5.9¢ galena mining limited

Thanks for clarifying that BK, it's very helpful and something I...

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ecco

144 Posts.

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24/04/19

08:58

Post #: 38246287
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Originally posted by BobbyKennedy: ↑

Just need to clarify something. Even after Toho pay the final tranche, Galena won’t have the $90m+ cash. The funds from Toho were to acquire a stake in AMPL and AMPL holds the cash. So Toho bought 40% of AMPL for $90m but that also means they have part ownership over the cash sitting within AMPL. The parent company, Galena, won’t have the full $90m in the bank to do as it wishes so it can’t be valued as such IMO.

There was the $10m subsidiary loan repaid to Galena and Kingfisher paid $10m for equity in Galena so after its all done, we as G1A SH will have around $20m free cash and equity in AMPL (which is cashed up). The AMPL cash will be put up as equity in the debt finance package to get the mine built.

Sounds like splitting hairs but it’s not.

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Thanks for clarifying that BK, it's very helpful and something I had overlooked in my valuation model.

Last edited by ecco: 24/04/19

G1A Price at posting: 41.5¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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