GREY:DULMF - Post by User
Comment by
rationalinveston Aug 20, 2014 3:32pm
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Post# 22861755
RE:RE:RE:RE:60% of NPV (1.4 Billion) / 140 million outstanding shares...
RE:RE:RE:RE:60% of NPV (1.4 Billion) / 140 million outstanding shares... DM is now worth (enterprise value)
$ 30MM debentures due 2018, $ 2.25MM annual interest
$ 12.1MM Anto bridge loan (to be repaid shortly, almost certainly in shares)
$ 46.5MM market cap at $ 0.33
-/- $ 6.4MM cash minus accrued interest
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~$ 82MM EV
That's still a whole lot of moolah for 60% of a project with a zero (negative?) NPV and IRR at current metal prices, a nearly $3bn CAPEX, and plenty of permitting and execution risk.
The lead time is very long and I would estimate a BFS would take at least another $ 50MM if not much more, of which DM needs to come up with 60% of the funds instead of the earlier 35%. So pretty safe to say TMM will be shelved for now. It's now first about getting money for management salaries, debenture interest, and G&A.
Dundas, who as always says he ''knows what it takes to take the company forward", demonstrated he knows even better what it takes to take his pocketbook forward and to destroy shareholders in the process: just check the 2013 annual report page 23 on sedar.com: 'key management personnel compensation of $ 5.6 million vs $ 5.0 million in 2013'.