Assets ex-Dufferin Looking for garbage on the balance sheet.
Most the obvious place to look is the Development Property.
Let's double check if there is garbage in the assets ex-Dufferin.
The subtotal for the assets ex-Dufferin is 5,639,239.
Most stuff is boring cash like.
The only things worth looking at are:
Plant and Equipment and the Explorations assets.
Plant and Equipment can be re-priced to their receivership costs.
The exploration assets can be valued in price/ounce.
Estimate of PwC June 30, 2018 balance sheet
ASSETS
Cash 10,559
Receivables 44,254
Prepaid expenses 63,401
Net fixed assets (RCG) 19,910
Land (MGC) 99,270
Reclamation bond 1,070,000
Plant and equipment 3,053,588
Exploration assets 1,278,257
Subtotal Assets 5,639,239
Balance sheet reworked for floor prices.
ASSETS
Cash 10,559
Receivables 44,254
Prepaid expenses 63,401
Net fixed assets (RCG) 19,910
Land (MGC) 99,270
Reclamation bond 1,070,000
Plant and equipment 2,989,170 receivership price
Exploration assets 1,342,675 adjusted
Subtotal Assets 5,639,239
Plant and equipment were purchased out of receivership.
Allocated cost 2,989,170. Possible floor value.
I adjusted the Plant and Equipment down by $64,418.
And the Explorations assets up by the same amount.
Exploration assets can now be valued in ounces of gold with Tangier and Forest Hill carrying all the freight.
Tangier 173,200oz
Forest Hill 326,700oz
Total ounces 499,900oz
$1,342,675/499,900oz = $2.69/oz
ANX, MAE, OS are currently defining resources.
The value is likely closer to $5/oz.
Conclusion: a big haircut does not come from the Assets ex-Dufferin