I think you will find that they use a long term average price in the valuation methodology.
I would suggest that they probably use a commonly used price of around $US1,100 - $US1,200.
Given that this what the price is now, I'm not sure what basis you could revisit the valuation range of $45M to $65M. The agreed price is also at the high end of the valuation range.
The price agreed seems to be supported by 2 independent valuations done, as I just indicated, at around current prices.
As well, a valuation isn't greatly influenced by a spike or drop in price in a single time period.
The only way I see the value of IGC's asset being worth more if it gets out the drill rig again and starts spending more funds on drilling more ounces. clearly both sides aren't interested in doing more of that otherwise they would be doing it.
Its quite possible that its woorth more than 40 cents a share but you have to prove up the addional ounces first.
Take the cash when it comes and either move to NKP for future upside which will be a certainty or invest in another oppoortunity.
IGC Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
