https://www.luminacopper.com/s/Presentations.asp
The following commented information could be noted:
- Sell to a Copper Producer in 2013 – The dream is over for 2012...
- Boundaries to sulphide mineral resources have been reasonably defined...
Considering Mr. Strang Interview on Mineweb – “Lumina is faced with the "law of diminishing returns"”.
https://www.mineweb.com/mineweb/content/en/mineweb-junior-mining?oid=160167&sn=Detail (thanks to longchris)
The recently published Updated NI 43-101 (resources estimates) should be the final one since no additional drillings will be performed on Taca Bajo.
- Preliminary Exploration Program currently occurring on neighbouring claims
This refers to the recent 50% exploration JV with Cascadero’s Francisco II & II.
Positive results from this (limited) Exploration Program could be a bonus for Cascadero’s shareholders and one additional argument to maximize Lumina’s shareholders value.
- Northwest boundary defined
Seemingly no (direct) extension of the existing Taca Bajo deposit towards Francisco II – November Presentation Cross Section Page 9 and TTRC 12/40.
Not a direct bonus for the Exploration JV partners…
- Preliminary Economic Assessment (and related activities) – Now due by March 2013 (and no longer in February 2013)
- As per November 22 Share Price, Lumina is valued at $0.014 / lb in situ – November Presentation Page 11 – as compared to a “Recent Comparable Transactions” in Argentina (Project Altar) to a selling price of $0.04 / lb in situ.
Note that the Stillwater Mining friendly plan of arrangement to acquire Eric Friedland's Peregrine Metals (Altar, located in San Juan province) took place in July 2012 with a substantial (and surprising) premium (nearly 4 times the closing price of the day before announcement). This transaction took place before the completion of the preliminary economic assessment on Altar.
Taking into a market capitalization of $398 Mio for Lumina, a transaction value of $487 Mio for Altar and their respective “reserves” of 28.7 billion lb in situ and 11.7 billion lb in situ, Lumina’s potential transactional price valued through Altar is around $1,200 Mio (or around $26 per “fully diluted” share – see November Presentation Page 13).
As compared to the “Market Comparables”: NGEx Resources Inc. (NGQ) is the single company listed in the table with resources partially located in Argentina (but mainly in Chile “the world’s premier mining jurisdiction”) with a market price of $0.028 / lb in situ (based on resources that can still be expanded). Lumina’s valuation based on NGEx Resources should be around $18 per share.
Prior to the Preliminary Economic Assessment, a possible Lumina’s takeover valuation should be within this range of $18 to $26 per share… but more to the lowest side of this range...
Patience is the key…