NYSEAM:PZG - Post by User
Comment by
coyote13on Feb 05, 2015 9:31am
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Post# 23398563
RE:RE:RE:Paramount – Coeur Merger Valuation
RE:RE:RE:Paramount – Coeur Merger Valuation
Robey: have a look at a preliminary prospectus filed on Sedar. Filing date was jan 9/15.
The prelim prospectus says Coeur pays approx US$ 1.5 million for a 4.9% interest in Spinco. That would equate to approx US$30 approx of value in Spinco.
Spinco's assets immediately prior include cash of US$ 8.5 mill, Sleeper and 2 other properties.
The US $30 million value looks low to me but Sleeper is a low grade and high cost project. Not sure what it is worth in a US $1200 gold environment... US$ 30, 40 or 50 million. At US$1500 gold, its a new ballgame.
Market can't be as wrong as you are suggesting. If you are right, PZG is almost a double from here and you should be buying every share you can get your hands. Not sure I agree.
Market suggests something closer to my number with the usual discount for uncertainty. Net net, at the face of it Spinco is being valued today at zero.
We will know sometime in Q2.
Best
Coyote13