Mart Resources Inc MAUXF

Mart vs Addax Valuation

[oullins]

Interesting valuation for Addax.

Ruffly, Addax is 10 times bigger than the total UMU field both in reserves and production.  This means that the UMU field is valued at around C$800M.  (Mart + Sun Trust)

At today's share price for Mart the field is valued at $C428M     (C$.63 * 340M * 2)

So Mart's fair valuation per share at the takeover value of Addax is  $1.20 a share.

Early 2012 we will be at twice the production and maybe twice the reserves (UMU7 + 8 + second structure for 9)

I let you calculate the value at that time.  Hint multiply by 2.

One more calculation.

Addax went for a 47% premium. So, if you undervalue Mart at the same ratio than Addax was the "undervalued value" of Mart should be 80c a share.

If you are not too confused I let you draw your own conclusions.


IMO Mart is not an acquisition target unless Sun Trust is willing to sale their share in a package deal.  I do not have a clue about Sun Trust's intentions.


Anyway, I think this is a good reality check