Sparton Resources Inc V.SRI

My opinion DD and price target $0.50 CAD

[JetsFanYEG]

Here is a copy of my post fro CEO for those who care to see it:
My opinion only DD and price target of $0.50 CAD per share SRI This is my price target BEFORE VRB goes public and there are some important points as to why: 8.9% of VRB is worth IMO about $55M CAD (today not after SPAC or additional news and new contracts) VRB valuation above based on my estimate of the China contract for a 500 MWh battery announced in March, by my napkin math that contract is worth about $125M USD so a conservative market cap estimate of VRB $500M USD (4x contract value based on future growth potential) Contract value of $125M derived from the fact that VRB is trying to be competitive with large scale Lithium battery setups for power storage (https://www.nrel.gov/docs/fy19osti/73222.pdf) this article roughly puts mid range price of $250 USD per KWh, VRB system is 500 MWh so 500,000 KWh, 500,000 x $250 = $125M USD Second reason I believe VRB to be worth about $500M has to do with Friedland and his ability, also we can see BCPG investing $24M USD to partner with VRB, and although the details of the deal are not known it can be assumed a Billion dollar entity like BCPG has done great DD before investing that kind of money About the 2.18% in the BCPG news release, this is very important and I misinterpreted it at first as well, the 2.18% refers to BCPG’s percentage of THEIR OWN VALUE NOT VRB’s, BCPG invested by way of a convertible bond, not buying shares, it is assumed that the bond can be converted to shares at a later date but the details as to what percentage of VRB is on offer is not specified, BCPG’s market cap on July 2nd was $1.1B USD, 2.18% of 1.1B is $24M USD, therefore BCPG was stating that per Thai law they don’t need to disclose full details of the deal because the deal value does not exceed 15% of their own company HOWEVER we also know that since the news BCPG has increased in value by about 5-6% or about $70M USD, we can infer that the market agrees with BCPG’s deal which IMO would not be the case of VRB was not a valuable company Furthermore, SRI’s investment in VRB is listed on the financial statements as valued at $1.489M CAD (1.19M USD), if we work backwards on the 8.9% value this would put VRB’s value at 1.19/0.089= $13.3M USD, absolutely laughable when you look at the contract listed above and the investment by BCPG If you value SRI on nothing more than the investment in VRB (which is unfair based on all they have going on), at this very moment if you assume 100% of SRI’s MC is 8.9% of VRB’s value $17M/0.089 gives you a VRB value of $191M CAD ($152M USD), ask yourself if Friedland’s SPAC is going to be worth more than $150M and whether anything else SRI is doing will contribute anything to the MC and you will probably agree that a $0.50 CAD price target is likely conservative, but again just my humble opinion

[mingzhu]

2..18% is likely the holding of VRB by BCPG accordding to this artticle when it convert debenture to sshares of VR  Energy. https://value-trades.blogspot.com/2021/07/the-two-best-stocks-in-canada-right-now.html. Can you show the link of 2.18%  convertible debentture deal ?