It is nice to hear that RCG's assets are may be more valuable than AGB's.
At this point in time, AGB has defined more gold than RCG. 8x more.
RCG has a lot of drilling to do to reach parity.
And a lot more drilling on top of parity to be 5x more valuable than AGB.
It will require lots of cash to drill out the resources.
Dufferin has the potential to provide that cash once it is operating.
But it needs, say $20M, to get started.
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An investor with $20M will look at everything but the share price.
An investor with $20M of cash will consider ..
1. downside risk
2. time to payback
3. his long term prospects
4. his opportunity cost
His opportunity cost may be investing in RCG instead of AAPL or AMZN.
Both are $1T companies.
AAPL has 10x the shares outstanding compared to AMZN.
AMZN has a share price 10x greater than AAPL.
He may already own a $20M stake in each.
He doesn't care if he has 10,000 shares of one vs 100,000 shares of the other.
No one should bat an eye at 10x difference in shares outstanding between comparable companies.
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An investor in RCG would look at $13M book value and the $89.2M NPV.
He will shrug off the $1.75M market cap after tax loss silly season.
He will note the growing book value from like minded investors.
He may give his warrants more breathing room given the amount of shares in the hands of retailers.
He will want to know more about what next ...
Mergers, buying out competitors, being bought out by competitors ...
He may wave off a consolidation of shares.
His thoughts are :
"Retail is not paying for this. I am paying for this.
I will do it through a private placement on my terms.
Retail will match my price soon enough."
So, how many shares for $20M ?
67M shares at 30/sh ?
100M shares at 20c/sh ?
200M shares at 10c/sh ?
400M shares at 5c/sh ?