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Highbank Resources Ltd V.HBK

Alternate Symbol(s):  HBKRF

Highbank Resources Ltd is engaged in the business of acquisition, exploration, and development of mineral resource properties in Canada. The company's project includes the Swamp Point North project.


TSXV:HBK - Post by User

Bullboard Posts
Comment by cinqueporton Sep 26, 2013 10:32am
150 Views
Post# 21769464

RE:RE:RE:Show me the money!

RE:RE:RE:Show me the money!Ray,

Most references that I can find, appear to recommend using DCF.

https://www.basinvest.ch/upload/pdf/Valuation_of_Metals_and_Mining_Companies.pdf

https://www.ey.com/CA/en/Newsroom/PR-activities/Articles/2010-CMJ-Mining-Valuation

https://www.stthomas.edu/business/centers/shenehon/pdf/Hamilton_SAND_AND_GRAVEL_January.pdf

My uneducated DCF estimates give a range of between 2 and 7 dollars, which I suspect is a little optimistic in HBK's case :-) . Rimington has argued for an estimate based on predicted EPS.

The market is valuing comparable producers( such as PLS and ABM) at over a dollar right now.

Prior to production, Ascot's SP was trading just below 50 cents, then jumped to over 2 dollars (!) So, a low ball offer for HBK could well be around the 30 - 50 cent range, however I suspect that the 70 cents is a more realistic number based on apparent demand. NPV, anyone?

Bullboard Posts