RE:PEA shows FCU worth CA$2.84 per share (Maiden RE only)Agreed, fantastic numbers and based on a back-of-envelope calculation, IMO its about $3.20 with guesstimated new pounds. They really should have included the updated RE with the PEA. Why in the world did FCU agree to this DML takeover plan, when there are such great NPV numbers?!
quakes99 wrote: I'll be working on a more detailed analysis of the PEA numbers but using Net Pre-Tax Cash Flow of $4.12B, previous takeovers such as Hathor have been sold for 29% of Cash Flow... so that puts the Takeout Offer value at 29% x $4.12B = $1.2 Billion.
For 421M shares fully-diluted = $2.84 per share.
And that does not include R600W and expansion of R780E.
As a resource estimate is not included in the News Release, it's hard to say what RPA included/excluded in their mine plan to come up with the total production figures.
In any event, lowest base case on historic norms is $2.84/share for the economic analysis they have provided. Add in R600W and R780E expansion on top of that!
An absolutely fantastic report that compares very closely to the PEA exercises we did earlier.
Stay long and prosper!