RE: RE: LSA a great fit for SBBWhatever they do though I will give the benefit of the doubt to SBB. The purchase of Back River proved to be a brilliant move.
Dundee only got about 20-25% of the new Sabina for Back River so that valued Hackett at something like 3x the valuation of Back River.
The silver royalty for Hackett represents the value of the "old Sabina" and has been estimated to be worth about $300 million.
That is somewhat disappointing considering I believe the old PEA on Hackett showed it with a NPV of something like 950 million but that's the way it goes. I believe Sabina got a fair deal for Hackett so I don't believe they threw away value by selling to Xtrata.
But if the Hackett royalty is worth $300 mil then Back River is currently worth about $400 mil or $100 per ounce in the ground.
Thus arguably the value of the Back River project is now greater than the value of Hackett, so in hindsight valuing Back River at 20-25% of Sabina and Hackett at 75-80% was giving an awfully conservative valuation to Back River. Or, in other words, in hindsight the Back River deal was a heck of a bargain. Of course part of the value of Back River is based on the fact that they have doubled the gold resource, so in hindsight it may be more accurate to say it was a win-win deal for Sabina and Dundee.