Imperial Metals Corp T.III

I MAY BE CRAZY

[faraway1]

Maybe I am crazy but here goes:
In 2019, Newcrest bought a 70% interest in Red Chris for $806.5US million or roughly $1.07 billion CDN.
So 30% would be worth roughly $460 million.
But since 2019, drilling has proven up significant additional reserves and commodity prices are higher so a more relevant value might be $750 million.
Thus, value to III=$750 million.
Less III debt = roughly $200 million
Less reclamation costs $140 million
III’s value attributable to Red Chris but without Mount Polley or other properties would be $410 million or roughly $2.65 per share.
Thus, the value of Mount Polley is the determinant as to the potential gain to be derived from an investment in III. III’s published financials are sufficiently deficient that makes it difficult to attribute a value to Mount Polley and furthermore, there has only been one operating quarter since the restart of this property.
I have no idea as to what a fair value for MP might be but perhaps someone on this board can make a guess.
Comments or criticisms welcome.

[miningfundi]

Hi faraway1, I suggest that your current estimate of III's 30% of RC at $750 million it too conservative. In the November 2021 PFS, the estimated value was $673 million, which was based on the discounted cash flow method, which is relied on by conservative bankers and serious investors. (The major disadvantage of a DCF valuation is that it only values the earlier mining years - later years are

[faraway1]

Thanks for your comments. I do hope that you are right!

[temeraire]

The question I ask is whether ME would accept a fair offer from NEM or sentence the rest of us to being sharehoatages?  Proceeds from our 30% could find a div and expiration of all the other properties in our portfolio.....