RE: RE: chet's price MinedProfit...... you certainly bring some good Mining Info. ...Good to have information and facts, vs just opinions . And we have a group here that have been labeled ( not by me) as the F-Bog. Fantasy Buy Out Group.... i personally found it funny ... but that brethren did not, and let me know it !. No sense of humor. But in their defense...... who knows what the b/o price is gonna be. I HOPE they're right !!
But after sooo long, its smart to have some logical idea.
.......Anyway... as mentioined Chet has announced he'll now sell 100% , and all Partners on board. i have done a lot of research on 'Comparable Mine SaLES"... which is so hard to obtain. And only have done the DD b/c we are given so little info by the Co. Theyre burn rate is $1.5 mil p/mo w/ $7.5 mil now. down to $1.5 mil by christmas. Partners have said they want out now, and Chet hired a Prominant Invstmnt Banker in June to sell the Co. Govmt is also on Him to egt going on the Mine. Partners also owe Ole $20- 50 mil, so they arent going to write a $300 mil check for the Mine. Consequently i hear we now get 45% as pay back.... Therefore, he needs to sell, and looks as if hes planned this timing for a while
On Valuations....thats the hard part. Ole doesnt make it very easy to know how much gold they ahve. And the wholesale price of Gold is tougher. Dave Scott at Ole and others ahve told me M & I Gold goes for $200-$400 p/oz, have read that documented Inferred Gold goes for $125 p/oz, and the Blue Sky Gold is around $25-50 . Granted , those last two groups are " loose", and probably on the Hi Side.. But using those 'industry standard figures' and using the Highest range of those.... i get rough figiures of $1.5 bln to $1.8 for the entire Project. And a low range of around $1.3 bln. .... Fast figures say $4.50 at $1.5 bln, and $3.90 for $1.3 bln. On Comps....the Redbacks and the Andean deals ( as you know) all were huge Producing Mines w/ Mines up and ready, and also had big sp #'s...They got the huge "improbable " figures. But arent a true Comp.....But a Peregrine Metals and a NorthGate Minerals just went Under Contract. Oromin Mgmt has used those as something to look at. Both are also in VC. Peregine is smaller, but had soem simlarities,,Sold at $480 mil... and Northgte had similar Gold amounts... but also a Gold Producer. They have 9 mil oz, vs an Ole reported figure of 10 mi. They ahve M & I Gold at 3.6 mil oz Ole has 3.3 mil oz. They did have 4 up and running built Mines and a fifth on the waqy. They now produce 180 thou oz p/yr, they are in Ca and Austraqilai, we're in W africa. Their deal just went for.................. $1.5 bln
Since i'm just a real amateur here, I asked for a few personal Estimetes. I got 3 from folks taht visited the Senegal Project, know ole intimately, and know the Gold Mining market quite well for many eyars. I got a low of $1.1 bln and a Hi of $1.4 bln for the entire Project........... ok thats all i got . But lastly, if Chet can get 2 bidders who want a potentially Great Project.... we just might get a Big #.
Tired of typing.... good LD to all.