RE:How the market is valuing the Peru assets of AUGThe market cap of AUG was around $ 300 Million and the vast majority of that was based on Peru because Peru was the only asset worth a dam and everyone knew that but to make a deal work they had to monkey with the valuation so that the Canadian assets carried most of the value while the Peru considerably less because of course Peru is being stripped out. So they got a valuation on Peru which said it's worth US $ 45,000,000 or C $ 60,000,000 so now that would imply that the Canadian assets must be worth the balance or $ 240,000,000
So now you have this big number to throw around when taking over Eastmain which is supposedly being taken over for $ 121,000,000.
To simplify, when the dust settles Fury will have 110,000,000 shares out and the Eastmain holders will get 34,000,000 and the AUG holders will get 76,000,000.
Now if the Eastmains position is worth $ 121,000,000 then that would mean $ 3.56 per share giving Fury a market cap of $ 391,000,000. ( 110,000,000 X $ 3.56 )
Hmm, that's dam good considering before this deal was proposed AUG was trading at
$ 300,000,000 and ER was trading at $ 60,000,000 for a total of $ 360,000,000 but Peru was still included in that #.
So now the combined market caps are higher even though the best assets have been stripped out.
Cool, maybe they should strip out more stuff and get this bad boy up to $ 1 Billion ! LOL !
SecondLast wrote: So managements independent valuation gave them a 42MN value. The market is valuing them at closer to 150MN right now given the discount on Fury you get by buying ER instead of AUG. Something doesnt add up