Mike:
After talking to IR (Russell), I've been shown a slightly different scenario for calculating the value per share of a property such as MDHM has at Lipangue and LDM.
ASSUMPTIONS:
1- The inferred tonnage is 25,000,000 tonnes of mineralized rock.
2- To use your "gold equivalents" basis, a 1.5 grams per ton of gold
equivalent is assumed.
3- Total shares outstanding equal 107,160,334 (71,300,334 + preferred
shares converted to common shares 8,965,000 @ 4 = 35,860,000)
4- The Major's buyout premium
a.- 80%
b.- 90%
5- Total gold equivalents equals: 25,000,000 @ 1.5 gr/tn divided by
31.1035 = 1,205,652.1 troy oz.
6- The gold price is $273.00/to
7- Total value in the ground = $329,143,023.30 (1,205,652.1 @ $273.00)
8- Using a. above: share value is total value @ 20% = $65,828,604.66
divided by 107,160,334 = .62 cents per share.
Using b, above: share value is total value @ 10% = $32,914,302.33
divided by 107,160,334 = .31 cents per share.
According to Russell, many Majors use a basis similar to this to arrive at buyout figure. Now this is very good news to me since LDM is not included, nor is other suspected mineralized rock at Lipangue including the elusive porphery which should be a big bang!
Does this make sense to you Mike?
The Gipper |
