NYSEAM:PZG - Post by User
Comment by
coyote13on Feb 04, 2015 12:59pm
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Post# 23395317
RE:Paramount – Coeur Merger Valuation
RE:Paramount – Coeur Merger Valuation
Robey: not sure the value of Spin co is $190 million. Spinco is Sleeper and a couple of other grass roots properties. Sleeper might be worth US$ 50 million. I consider the Mexico assets more valuable than Sleeper and Mexico was valued by Coeur when deal announced at roughly US $ 144 million.
The US$ 10 million that will find its way to Spinco has been valued by Coeur at roughly US$1.5 million for a 5% ownership. On that basis Coeur saying Spinco is worth US $ 30 million. The $10 million will pay G+A for a year plus a drill program to improve the quality of AU/AG ounces.
I like the deal overall and I would say at todays CDE value your PZG shares have an implied value in US $ of approx $1.70 ( $1.38 implied CDE plus $0.32 for Spinco)
I like CDE 's future in a flat or rising gold price environment and Sleeper might be worth more with
some focus.
Coyote13