QuestionHi All,
looking at the latest press release of the company, I understand that AfriCan have a 15% interest in the Haib project, which will be reflected for us (AfriCan shareholders) by a 50% interest in Deep-South company, through a share dividend payment.
As per the investor meeting held in Stockholm, AFA shares should be valued at 12 cent only reflecting Haib project, which would reflect a value of 26.6M (0.12$ * 222M shares) . This means that the whole value of Haib project should be valued at 175M (26.6 / 0,15), which seems to be relatively high... As per this logic, Deep-South company should be valued at 53 M.
Is Haib project really worth 175 M?? Currently, AFA value is 12M. It seems that Haib project is presently valued around 20M, where the part of AFA would be 3M (15%), thus Haib project representing 25% of his asset (3 / 12).
Arpagon29, LeGagneur or other valuable posters, could you please confirm if my understanding is correct? If yes, AFA shares are currently way way undervalued.
Thank you
Mark