GREY:STTYF - Post by User
Comment by
MidasMulliganon Dec 09, 2013 5:51am
509 Views
Post# 21984716
RE:RE:Should I stay or should I go?
RE:RE:Should I stay or should I go?
Hey everybody, I'm disappointed as much as anyone else (bought too many shares at around 4,7 USD...) but let's be rational here. If we were to value SND from the perspective of a private buyer, the now company looks undervalued IMHO.
Market value: 37,5 mil. USD
cash in 6 monhts: 10 mil. USD
debt: 0 USD
enterprise value: 27,5 mil. USD
so for about 27,5 mil. USD a private buyer would aquire a working stream generating about 4 mil. USD/year. This stream alone should generate more than 40 mil. USD during the next 10 year (I know, the life of mine has not been confirmed yet to be 10 years...), maybe more, if the prices of commodities pick up (nice optionality). I would argue, that to pay less 27,5 mil. USD just for this streem would be quite a sensible deal.
He (the private buyer) would also get "for free" CZN stream, possible profits from ETG and other future ventures...
From this point of view, the share price should be higher, even if we take into account recent failures, don't you think?