Silver Bull Resources Inc SVBL

Arras Valuation

[andre171]

The latest capital increase announced yesterday gives an idea of the valuation of Arras Minerals. SVB had distributed + - 35M Arras shares and yesterday's deal is for 10M. At a price of 1 CAD, Arras could therefore be valued at 45M CAD.

I had read that at the time of the distribution on September 24, the Arras shares were valued at $ 0.5. The subscription price for 1CAD is therefore very encouraging, especially since those who agree to pay it do so because they believe that the stock is worth more or will be worth more in the reasonable term. What do you think ?

[LondonInvest]

I think they did the capital raise WITHOUT warrants, suggests a higher price already now.  I think a valuation working towards $100 million ($2.20/share x 45 million shares), but my working model is actually closer to $10/share when it starts getting some new drill results next year.  I also think the Silver Bull trading at $10 million valuation on its own is a joke, it is worth $60-$100

[LondonInvest]

As a further follow-up, keep in mind SVBL has 12% of Arras shares, so if Arras is worth $45 million, then SVBL is worth $5 million just for this holding.  The total market cap of $10 million for SVBL makes no sense. 

[Heywood_Silvers]

Look for Tim Barry & company to sell off the remaining 30% of the project to South 32 for scraps and then migrate over to their new toy:  Arras Minerals. Don't worry, they've feathered their own nests.  As for we shareholders, I guess what happens to us depends on the early trading values for Arras.  I'll be absoutely blissed if we can get $1 or higher.  Not

[andre171]

And what do you think they can get for the remaining 30% of the Sierra Mojada project? South32e bought 70% of the project for $ 100 million, which proportionately would amount to 42.86M for 30%, or 1.6 CAD per share for a current price of 0.39. In the meantime, the local dispute has been settled in favor of SVB!

[Heywood_Silvers]

Maybe they can swing, with a small premium in a buyout, $1.50 USD per share.  Now, mind you that is only 20 cents USD a share after you adjust for the 1:8 reverse split.  To put that 20 cents into perspective, I still hold some of my shares from last decade purchased around 50 cents a share, so that is a tidy 60% loss.  My more recent shares will show gains though.  All in all,