The sale of some 6.9% of KGFC shares is recorded on page 18 of the CGZ 1996 Annual Report under "Subsequent to December 31,1996, the Company has sold 1,900,743 KGC Common shares, reducing its investment from 21.9% to approximately 15% at May 13, 1997. These sales generated cash proceeds of $1,562,484 and a loss on sale of $60,000."
This suggests that they carry their shares at a value of ($1,562,484 + $60,000 ignoring commissions / 1,900,743) $0.85...
Also, it would suggest that they still hold approx. 5 million shares...(ie 15%)
No conclusions being made here...simply facts from the annual report...Because you asked for facts and I haven't seen a KGFC Annual Report...
I'm having trouble following their Investment in KGC and Gold Pool JV Limited as they carry them on the books valued jointly at $10,942,255 which I can only conclude is their carrying cost. Yet I can't calculate a market value since other factors come into play such as deferred exploration costs and proven/possible reserves which is not clearly defined. On August 1996, CGZ purchased 25% of the Gold Pool for shares valued at $4.50 ($4,167,000)which is used to ascribe the value of the Gold Pool 25% on their books...
I would love to see some proper valuation made of these companies... |
