new mathSo it has been said many times this was about florence getting built.
Also I think dc keeps saying it was 20% dilution. I come up with 15.
If it was 20 then I may as well forget this math as 20% of tko is all florence is worth. So please let us know how u got 20% dc.
I will use my 15% calcs and transfer all 2 florence. That will leave pre pp sh with full value on gib, ymi, np, and alley.
So the pp took 15% of florence from existing sh.
At 3.50 copper, gib is worth at least as much as florence.
So lets transfer tgat 2 florence.
Existing sh have then sold 30% of florence.
We still have 3 other monster deposits shovel ready and proven. Kodiaks new discovery down the road is undrilled and unproven. But looks good. It us a one trick pony trading for 60 million dollars.
So lets call each tko deposit worth 100 million for 300 million. 15% would b 45 million.
Transfer that to florence for jv money%. If 20% gets u 100 million then 45 million would b 10%.
So now everything has been transfered to florence and existing sh still have there full position in gib, ymi, np and alley.
So the 37 million pp seams to have bought 40% of florence.
If we need 300 million cads to build plant then we have 37 million cads from pp to do it.
Lets say we get 100 million for 20%.
That still leaves existing sh with 40% of florence. So now all sh have to come up with 163 million dollars yo complete the build. Either by bank cash or borrowed or stream. Lets hope it is not a stream.
Using todays price, the mine should generate tko 80% of about 163 million per year. So in a perfect world current sh would b debt free at florence and
getting about 30 cents per share earnings for a 4.50 cent sp increase.
Since we gave transfered pp cost all 2 florence current sh would recieve about 80 cents earnings there for a 12.00 increase in sp. Total 16.00 sp.
Also 300 million insitiu value on 3 deposits would be another buck a share
for total of 17.00 a share.
So will it be a fly or a nuget in the ointment. If the pp was actually 20% then we sold all of florence. If we get much less than 100 million for 20% then same thing.
The nugget would be if we got more than 100 million for 20%.
I await answers to the unknowns.
nf