Valuation estimate The way I see it is that the Glanville NPV calculation is still pretty appropriate and a good base to move off of ie. NPV = $575M after tax, discounted @8% using $375/MTU and a 1.2 million tonnes throughput. If you add 33% of their Moly NPV, it brings it to an even NPV of $600M.
We must now weigh the transfer pricing discount from the JV to IMC against some of the pickups from the Glanville calculation eg. $375/MTU vs. current $410/MTU, 2% royalty gone, 25% better quality & better Moly upside. This may be close to a wash but lets allow for another 10% discount - say NPV = $540M
Now if we base the spit in values between the JV and the mine on their perceived equities and therefore ROE we would have the JV @ $35M & the mine @ $140M (4 x $35M) or 20% / 80%
Value of WOF would then be:
45% of 20% of $540M = ~$50M
75% of 80% of 540M = ~$325M
Moguk estimate = ~$ 50M
Total = ~$425M or $1.30 per share fully diluted
I think this is at least ballpark. Comments?
AB