So here are Apollo's (AOP) EV/Oz figures below (from there recent annual report also posted on the ASX notices) to compare against BDC.
Shares on issue 291,620,590. cash at bank $36,658,541. last share price 59c. market cap is $172,056,148. Less the cash at bank gives you an EV of $135,397, 607.
Now, AOP gold ounces. The annual report says the AOP resource per ounces is as follows.
Measured nil oz
Indicated 815,000 oz
Inferred 290,000 oz
TOTAL 1,105,000 oz
For the calculation, measured is taken at the whole 100%, indicated is taken as 50% and inferred is taken as 25% of what its estimated at. So, the reduced or discounted totals become as follows:
Measured nil oz
Indicated 407,500 oz
Inferred 72,500 oz
TOTAL 480,000 oz (adjusted)
Now divide $135,397,607 by 480,000 oz gives you an EV to Oz of $282.08 for AOP. Remember BDC's is $80.09 per oz.
So BDC's EV to oz is 28.4% of AOP's.
Or put another way BDC's share price at 6.7c is valuing its gold assets at only 28.4% of AOP's gold assets.
If BDC was gold assets were valued at the comparatively same value as AOP's or 3.525 times higher (28.4% becomes 100% or the same as AOP),
that is BDC 6.7c current share price times 3.525 equals 23.6c per BDC share for a comparative value of its gold assets with AOP's gold assets.
So, if a takeover bid for BDC arrived right now and you use AOP's takeover valuation BDC is worth about 23.6c.
This is just one example of one way to try and estimate what BDC maybe really worth in the current investment climate.
This is all my own back of the envelope calculations and any errors you find belong to me. Information all sourced from both companies recently released annual reports and i used today's closing share price.
I suggest you do your own research and own back of the envelope calculations.
Have a nice weekend and dream "takeover!"
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