RE: RE: WHAT BIDS ??? It's pure insanity.
What's "intrinsic value" ?
QIT stands now at 1,9 MM$ market cap
it has 500,000 $ in its bank account
and 4,000,000 Perisson shares ; put them at a nickel a share
its 200,000 $
so you have a 1,2 MM$ value for the option to buy 50 % of Monster Lake
(the underlying asset) for 6 MM$ with a time to expiration
of 4 years ....with another embedded option to increase another 20 % for 4 MM$
Talk to any option trader and using a Black and Scholes model
where the strike price is 6 MM$ and the expiration date is 4 years forward,
with an underlying asset value anywhere in between 50 MM$ and 100 MM$
(considering 5000 meters drilled, results so far and in situ gold value of 100$ / ton)
and it is obvious that this option value is more than 1,2 MM$.
Under normal market conditions ( and we are going to come back to normal market conditions
like we've seen in the past...) a precious metal company would pay probably 5 MM$
to get this option and spend the 6 MM$ to get the 50%.
And if you are not convinced, there are plenty of examples.
Just take TYP and the Aurizon option to earn 50 % of Fayolle
they have to spend 10 MM$ and for another 15 % they have to spend another 15 MM$
for a big total of 25 MM$ plus...
....now look at the grades of Fayolle......the new updated mineral resources report stands
at 156,000 ounces of gold and Aurizon spent 9 MM$ so far since the deal was inked a couple of
years ago...
So before some analyst put forward an " intrinsic value " on a penny stock
they better do their homework or get another job
Quinto's market cap is on the contrary quite cheap.