TSXV:EPO.H - Post by User
Comment by
srpaton Sep 23, 2013 12:32pm
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Post# 21760051
RE:RE:1 dollar maybe?
RE:RE:1 dollar maybe?
RY,
I also found the timing of the after hours release interesting. I didn't make anything of it at first -- it reads verbatim like several other mining companies when I did a search on it.
It might be that it was recommended to do it. Or, possibly, Encanto management could be thinking that if there were a new, large shareholder, possibly due to financing the construction of the mine, that management and other shareholders have a safeguard against unwanted/hostile appointments.
As for valuation of the company -- what used to be a ballpark valuation for a potash junior 5 years ago (300-500M market valuation) does not apply anymore. The rules to valuation are completely different now -- and as far as I know -- nobody knows what they are yet. Certainly if Encanto gets a large offtake agreement and financing, they would be in a class (and valuation) of their own compared with other juniors.
srpat