RE:AZX VALUEMagrath,
A convenient company that can be conveniently used as a benchmark for comparison is our JV partner, PRB. It has about the same resource estimate but with an much higher Matket Cap
- RE: 1.4Moz (I = 0.682 Moz + Inf = 0.722 Moz)
- Cap: ~$101M ( $126-25 M cash)
- OS: 94Ms, (100 MsFD)
So, per Indicated oz = $101M/0.682Moz = $148/oz insitu, a hefty valuation for PRB Indicated oz.
Per Total oz (I +Inf) = $101M/1.4Moz = $72/oz in-situ (not bad a reference value).
With the above in mind for the scenario you have painted (non-core assets spun out as NEWCO) the Cadillac Break assets with 1.4Moz I + Inf), plus the additional ounces (from Orenada 170 plus drill holes), say another 0.4Moz (= 1.8Moz) @ $72/oz) would give a value of $129M for Cadillac Break assets, or $129M/580M,FD = $0.22/s.
Let's go back to the assumption of an additional 0.4Moz from the 170 plus holes. This value is consistent with what EO has been talking about (and I paraphrase: "the updated RE would be double the 2009 RE results for Orenada" in many occasions. Note: 0.4Moz + 0.561Moz = 0.961Moz, hence 0.961/0.561 = 1.7 (not quite double, hence 0.4Moz is a conservative assumption).
If the updated RE (6 April 2018 is just a few days away) does not give an additional 0.4Moz, then we can all blame EO for giving us false hope? And if the updated RE does not come out by the end of this week then our new management will need to have provide good reasons for the delay. It's high time to bite the bullet and issue the report. Patience is running short.
GH
--------------------
Magrath101 wrote: My thoughts on value of AZX. There is as of now app 1.4 million ozs in the Quebec assets. If the new RE comes out with an additional 400,000 ozs and that is minimum there could be many more ozs than that. That would raise the ozs to 1.8 million. At present value of $30 o
that means the Quebec assets would be worth only $54 million. I think that the minimum should be $65. oz. that gives the Quebec assets a value of $117 million and that still seems quite under valued. That would mean a share price of .20 cents and as I said seems way to low for these assets. The Ontario and Manitoba assets might be spun out into a ''NEWCO.''
We wait and see.