Duluth Metals Ltd DULMF

RE:RE:DM valuation

[mayorkgh]

Anto has an option to buy a further 25% (i.e. in addition to its current 40% holding) based on the NAV@10% discount value of the BFS...not the PFS. I don't however think there will be much difference in the valuation between the two...under normal circumstances. If Anto waits until the BFS and triggers the option, they will pay DM 25% of the 10%NAV. DM will be left with whatever cash that generates and 35% ownership in TMM plus its exploration holdings. All that will have happened following that exercise is a monetization of a prtion of DM's holdings; the value of the assets as a whole won't have changed and the number of shares outstanding in DM won't have changed. The PFS will likely be finished by July. It will give a good idea of what the BFS number is going to be. Anto has no control over that; Bechtel is doing the work and I'm sure DM is pushing them as hard as possible. Clearly DM has to get to the PFS and BFS as quickly as possible in order; I think the finish line is pretty close and DM has enough cash to tide them over. The spectre of a third party attempting a takeover is a possibility at the current share price however Anto is unlikely to let antone else walk away with the prize and the other large shareholders will presumably not dump their shares. I see no evidence that the management is bloated. They seem to be doing everything possible in a tough market.