Well having read a lot of the conjecture and seeing a lot of dirt being kicked around, I have attempted to come up with a long/short analysis of the situation that I can understand.
My first assumption is that there will be about 400 million shares when fully diluted, and the rights excercised, more or less. Failing to fully excercise all the rights, will mean less shares. EPS was too much a hassle for me, so I simply totalled up all the CURRENT reserves, and priced them @ $2.00 Copper, and $400 Gold (USD). All that comes to about $1.2 Billion USD more or less. The total cap, @ .07 per share, with a total of 400 million, you guessed it, bingo $28 million bux. OK !! Yes that only included CCH's share of JV's and other sharing agreements. Given that removing the LT debt from the scene, gives CCH a net of about 1 Bil. The book price last given was .28 cent(Canadian) per share.
From what I can see, all this dance is about being sure the big fish get their due, on rights converted to stock. As to the company, it is a mining company with all that goes with that. While I have a postion, I do have qualms about how the share price keep sinking, especially just before emerging from creditor protection, but again, I have good feelings at being priced in lower than Sprott and all the rest. Mind you, Sprott, and Raymond James are far from patsies, but although they can tweak the terms right up to the time they are published, they in fact, may be hemmed in by events. So I sit here under .10 cent a share, counting my blessings.
Do we have an ETA on emerging from CCAA?
Is there another view, one that hopefully is concise AND accurate? While I am not sure mine is totally accurate, I do find it understandable.......
Good Luck
DG |
