Some Scribblings - What Gold Properties Sell for Today the Price of Gold was around $1660 per ounce according to Kitco.
So....I worked out some rough numbers
TRR Website on April 27 2012 shows 177.37MMshs (Basic), 195.72FD
At $3.30/share, the Market Cap BUYOUT is worth $3.30 x 177.37MMshs (Basic) = $585.32MM.
With 930K oz of “Contained” Gold in Indicated Resource and 5.94K oz of “Contained” Gold in Inferred Resource.
So, on a very coarse basis, the TOTAL Gold is is 5.94MMoz + 0.93MMoz = 6.87MMoz.
The Price Paid per ounce overall on an “apple” and “oranges” basis – $85.20/oz. or 5.13% of today's POG of $1660/oz
Obviously IAMGold paid a HIGHER per oz price for the Indicated than they did for the Inferred.
For example, if IAMGold they paid $200/oz for 0.930MMoz Indicated Gold or $186MM.
THEN they would have to pay $585.32 - $186.00 = $399.12 for the 5.94MM Inferred Oz. or $67.19/ oz. or 4.04% of today's POG of $1660/oz.
So, you can see what a willing BUYER will pay a willing SELLER per ounce "in the ground" in a politically friendly and mining firendly environment. Given the Price of Gold....on a %age basis - not much.
So, it is quite possible that the forecast Price of Gold going forward that was used in this acquiistion was a lot less than the $1660 area that POG traded at today.
Just cause for pause if anyone thought that the IMG's of the world were going to pay a hefty premium for an acquisition.
The 52-week HIgh was $5.91. If you BOUGHT in at above $3.00, which was the case for MOST of 2011, you either made NO money or LOST money. If you bought in 2010 around $1.00 or so, you did quite well.
Quite sobering...that's for sure.
If anyone wants to recalculate and comment, by all means.
Just some scribblings on a Friday PM.
LB