The PwC RCG June 2018 balance sheet reworked to $25M
Below is an estimate of the June 30, 2019 PwC balance sheet
(See note 5)
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
Development property 19,360,761
Total Assets 25,000,000
LIABILITIES
Accounts payable 7,270,353
Promissory notes 103,551
Credit facility 8,244,300
Asset Retirement 569,535
Deferred tax liab. 2,147,000
SISP/DIP 2,200,000
Shareholder equity 4,446,261
Total Liabilities 25,000,000
shares outstanding 174,790,696 shares
book value = 2.55c/sh
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Notes:
1)
Development property
RCG reports
purchase price 2016 9,870,602
+ improvements 2017 6,713,704
+ improvements 2018 7,872,214
+ improvements 2019 1,197,178
= Total 25,653,698
After haircut
purchase price 2016 9,870,602
+ improvements 2017 6,713,704
+ improvements 2018 2,766,455
+ improvements 2019 0
= Total 19,360,761
Improvements are up to June yearend.
For further details see June 2018 Annual Report pg 20.
2)
Is the development property worth $19.4M per balance sheet ?
pg 5 of MD&A June 2018
Pg 207 of PEA
$89.2M Post-tax NPV
216,050 Total ounces recovered
= $412/oz
Value of Dufferin's indicated gold
58,000oz indicated * $412/oz * 81% = $19.4M
58,000oz indicated
216,050oz Total ounces recovered
10 years of mine life
= 2.7 years to mine indicated gold
Atlantic was sold for $440/oz.
It had a much deeper pipeline.
3)
Off-balance sheet items
tax credits $10,000,000 (market value = 1/2 tax credit)
in-situ gold $5,000,000
+ value of permit $0
+ production ready $0
= $15,000,000
The value of the tax credits has not been market tested and is subjective.
4)
Estimated value of in-situ gold at Tangier Forest Hill
500,000oz * $10/oz = CAD$5,000,000
5)
originally posted on March 19, 2019
https://stockhouse.com/companies/bullboard?symbol=v.rcg.h&postid=29507943