GREY:HRIVF - Post by User
Post by
production05on Jun 09, 2009 8:47pm
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Post# 16057006
See price of Yamana asset sale (just announced)
See price of Yamana asset sale (just announced)
Yamana just announced sale of some small assets to a company called Aura.
The sale price is $240,000,000 US (including $40M US in royalties).
The assets being sold had Q1'09 production ounces of 34,298 and cash cost per oz of $556 US.
It means Yamana is selling the assets for $6,997 US per Q1'09 production oz.
Severstal values HRG at $127,000,000 US (NET of Debt) - see my previous post for the detailed work up of this.
HRG had 69,118 attributable production in Q1'09 and $414 US cash cost per oz.
It means that Severstal is valuing HRG at $1,837 US per Q1'09 production oz.
Both of these offers are made on the very same day.
This is even more proof that the Severstal valuation is totally out to lunch.
Yamana's sale is at $6,997 US per Q1'09 production, which is 381% of the value Severstal has assigned to HRG ($1,837).
Yet, HRG's production ounces were 202% those Yamana asset production in Q1 and HRG's cash cost per oz was only 75% that of those Yamana assets in Q1.
HOW ON EARTH IS SEVERSTAL ABLE TO GET AWAY WITH THIS STUFF SO FAR?