OSK valuation be BMO analystAt the Calgaryconference last weekend, I was made aware of an excellent comparison table ofADM, DTG, and OSK by the analyst of BMO.
I cannot paste this wonderful table because the new betaformat at Stockhouse is still screwed up (here is their response: “We sincerelyapologize that this issue has not been completely rectified yet. However,please be advised that this issue has been escalated to our Senior IT programmingteam for further review and investigation. Therefore you can be assured thatour entire IT team will be working around the clock to have this issuerectified as soon as possible”).
So I hope you’ll be able to understand thefollowing selected figures from the BMO table:
Figures are for OSK, then DGC, then ADM
Tonnes in DCF 287,697,000 153,200,000 285,400,000
Gradeg/t 0.841 1.596 0.780
Contained Au 7,794,000 7,873,132 7,168,106
Waste to Ore ratio 2.50 6.10 2.0
LOM Capex US$ 810,141,000 606,154,000 657,000,000
Pre tax IRR % 14.9 12.7 3.8
Start-up Jan 2001 Jan 2011 Jan 2011
Debt Financing US$ 529,340,000 336,137,000 360,000,000
EquityFinancing US$ 226,860,000161,363,000 240,000,000
Sharesin DCF 219,006,766 56,346,167146,857,094
CurrentFDIM shares 168,452,442 42,832,350 70,045,500
ShareDilution % 30 32 110
Premium(Discount)% -33.50 -17.50 0.41
CurrentPrice $ 4.51 17.03 3.45
Takeoverleverage % 211.97 198.89 222.28
If the figures end up being scrambled after I post thistable, then all you need to know is that the BMO analyst has OSK trading atabout a 33% discount to NAVPS of $6.78 after assumed future financing of debt andequity with a production date of Jan, 2011.OSK has a takeover leverage of about211% from current prices!