This acquistion of Marathon is a very good value deal for Calibre Mining
I remember speaking with Calibre V.P. Ryan King four years ago at PDAC about CXB's vision of becoming a 1/2 million ounce gold producer within five years.
It looks like they acheive that goal by 2025.
Even with the dilution, post merger this company is still dirt cheap on Price to Earnings metric .
- 402,496,366 moz shares X 0.6164 = 248,098,760 shares issued
- 248,098,760 + 458,8328,290 cxb shares = 706,927,250 shares o/s after merger
- trailing 4 qtr net income for cxb US$87.5 million X 1.38 exchange rate = C$120.75 million
- C$120.75 million / 706,927,250 shares o/s post merger = C$0.17 / share
- at $1.20 current trading price p/e ratio of roughly 7 : 1 post merger
Share price is still ridiculously cheap
Short positions should start covering in the near term now that potential dilution with another acquisition has occurred.
We should be some very big volume trading days over the coming weeks.
Slide Deck presentation of the merger :
calibremining.com
GLTA !
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