GREY:NKRSF - Post by User
Comment by
mining_pays_my_billson Nov 03, 2014 1:24pm
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Post# 23088908
RE:NKO could be another T.DM.
RE:NKO could be another T.DM.Yeh, that was a great story, that one- Duluth metals (t.DM) just got bought by Antofagasta (a very large south american miner) for 45 cents/share. Though their closing price on Friday was 7 cents a share. That's 6X market valuation. Their assets were worth way more than the market was assigning obviously (they had an NAV of 110M$- 150M in assets and 40M in liabilities) We have the same situation here with NKO in my opinion (NAV of 215M- 915M in assets and 700M in liabilities). It doesn't happen often that a company will get offered such a huge premium on their share price, but it does happen when there's a disconnect between market cap and asset value. Antofagasta wouldn't have got DM for 10 cents a share because the company never would've accepted it- that would have just covered their cash on hand (7M) and assigned about 6M to their assets- they knew they were worth more. We have 135M in cash (after indonesian property sale), or about 1.40$/share, so if there were a buy-out it would have to be at least that, plus the value assigned to their assets net of liabilities. If they would consider a buyout in the near future I'd peg the value around 1.75-2$/share, about 6X market cap.... and we now know that is not unheard of.