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iShares Global Materials ETF V.MXI


Primary Symbol: MXI

The fund seeks to track the investment results of an index composed of global equities in the materials sector. The fund seeks to track the investment results of the S&P Global 1200 Materials Index (the Underlying Index), which measures the performance of companies that S&P Dow Jones Indices LLC (SPDJI), a subsidiary of S&P Global, Inc., deems to be part of the materials sector of the economy and that SPDJI believes are important to global markets. It is a subset of the S&P Global 1200.


ARCA:MXI - Post by User

Comment by wilwalon Sep 22, 2015 3:09pm
210 Views
Post# 24125995

RE:Great Results!

RE:Great Results!It all depends on the methodology they use to determine value.  

If they price out the JV similar to Fekola based on ounces in the ground (which they probably already know for Diakha), then 1 million oz there and .6 million at Siribaya should be worth at least $100/oz (Fekola was higher) and that means $160 million x .5 MXI share , then it's $80 million or somewhere between .45 and .50.   Given difficult markets and the fact there is not yet a 43-101 Resource Estimate for Diakha then it could be discounted into the .30-.40 range.

Another way that is probably allowed for in the JV agreement when a deal can't be struck is to value the company on the basis of cost spent to date. Not sure what result that would yield.

A recent average share price is yet another method but with the drilling results looking so good, they would have to wait for the market to digest the results and then give it a month for the market to decide.

I don't know if they have an agreed methodology, but if not, there is certainly no reason why MXI can't just ask for .30.  It would still be a sweet deal for IMG as it appears there is plenty of upside to MXI and in the end, they will likely be paying .50 or higher, depending on how things pan out in the next few months.  I think anything less than .25 at this time would be robbery of MXI shareholders.
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