RE: Could suddenly see similar buyout headlines onI find it silly anyone parting with their shares under 70 cents, and I would be suprised to see management recommending accepting an offer for MTO under $1.50/share considering the size of the operation from a replacement standpoint ($200M infrastructure, which is more than double the current market cap),
…… Metanor Metrics for Agnico ….
· Agnico has, in broad terms, a market cap of $10bn and production ounces of 1m per year.· Agnico’s Enterprise Value (“EV”) per ounce of production is therefore about 10,000 USD ounce.· If Metanor’s (excluding SSL’s) EV was calculated on the same basis for 2012 production, it would be about USD480m (60k ounce less 20% SSL x USD10,000 per ounce). · The above USD480m company value, is USD2.40 per Metanor shares (200m issued). However, this would include Barry “free of charge”.
CONCLUSION:-
· Metanor would only be dilutive for Agnico’s earnings, if purchased for more than USD2.40 per share. · Since BL would probably have economies of scale if worked with Agnico’s Goldex (lower grade and deeper) mine in Quebec and also, Metanor is not fully evaluated for reserves, then Agnico may easily justify a price in excess of USD2.40.