RE:MBC value is between 0.08$ and 0.10$Timorron wrote: Investors get excited by a potential deal, but if you look at it closely you will discover that accounting has been very aggressive in that case. Net value according to last financial statements =204M$. From that amount you have to remove 52 M$ of financial cost capitalized (As at September 30, 2014, cumulative borrowing costs of $51,669 (December 31, 2013 – $32,153) were capitalized and are included in “Property, plant and equipment”. During the nine months ended September 30, 2014). Also there is 72 M$ of operational cost capitalized in the property to remove."Furthermore, until commercial production is reached, the Company capitalizes all costs specific to the Itafós Arraias SSP Operations, net of proceeds from sales during this period. As at September 30, 2014, net expenses of $72,976 (December 31, 2013 – $35,527. Finally, there is 48 M$ of non strategic assets and a quarterly loss of 18 M$ not disclose yet. To sum up :204M$ - 52M$- 72M$ -48M$-18 M$= 14 M$ of net value adjusted / 180 M shares = 0.08$ That is roughly the value for a partner.
The value is what someone is willing to pay for it - The reserves value is .55c/share. That's a low-end estimate.
I still predict any buyout is .25 - .35c and if they find a strategic partner depending on what they have to give up they can get this to $1 again once commercial production is achieved and growth in production and EBITDA happens.