Trying to figure value of New VirginiaEvery share of VIA will become equal to .4 GC (Goldcorp). VIA is trading at $25.77 USD x .40 = $10.31 USD. VIA is currently trading at $11.52 USD. Therefore, VIA is trading at a premium of $1.21 USD(11.52-10.31) x 1.1475 exchange rate = $1.388 Cdn. This is for one current share of VIA. Since we get .5 NVIA for every VIA, that tells me that .5 NVIA = 1.388 Cdn and 1 share NVIA = (2 x 1.388) or 2.776 Cdn (actual nominal price if it were to trade today). Minus 1.25 cash value would mean that a NVIA share is priced at a net $1.526 Cdn. and the net market cap of NVIA is 1.526 x 25?M shares or about $38.1M Cdn. Seeems really cheap when considering properties, market stature, and future royalties. Did I do my math correctly?
Has anybody tried to put a value on NVIA independent of this? In other words, what "should" NVIA be worth after figuring in the cash value and after GG has bought out VIA and figuring in what the net present value of the royalties are ? How do we know that the current NVIA premium that VIA commands hasn't *already* been bid up excessively? (***If not, why not? WHY does the NVIA premium for VIA remain low if it in fact is low?***) (After all, institutions and other investors have had plenty of time to buy VIA. If they haven't bid up the price to a fairly priced NVIA premium there must be a reason.) And has that premium been changing /increasing over time or has it remained stable?
It seems to me VIA, soon to become GC, is a proxy for the goldprice and one gets a low price on an exploration play (NVIA). However, if the price of VIA has already been bid up to an excessive premium, it would be better (or no worse) just to buy GC. (I don't really believe this, but I pose the question as 'devil's advocate' as I may buy more VIA.