G'day. You don't have to be Einstein to calculate that VMC is undervalued but by how much ?
I will have a crack:
Under the deal VMC receives 110m RXL shares which are currently trading @ 27c equals $29.7m of value. Add $5m cash equals $34.7m. Divided by 178,078,683 shares on issue gives a valuation of 19.5c a share. Add vanadium, REE, copper & zinc, lithium exploration acreage with positive surveys/sampling/nearology at a conservative value of 5c per share and I get a valuation of 24.5c per share. If RXL gets re-rated to 35c per share I get a valuation of 29.5c per share. Management options will dilute but not significantly.
So my back of the envelope calc is 24.5c to 29.5c.
VMC Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
