RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Lundin will acquire NSU and spin-out BishaPlease ignore last post. Read this post instead.
Nevsun paid around $7-8 for Reservoir Minerals ($2.89x2 and $2 cash USD) only eight months ago. This is equivalent to around $3.5-$4.0 USD per Nevsun share. $8 or $9 is more reasonable but lower zone has zero value at this point. I really wish Nevsun will announce the drill results for the lower zone asap.
For a company that has been doing everything on target (schedule/budget) is sure taking much longer than we anticipate to solve the production issues.
The stock price is undersold at this point. I believe using the undersold value of the stock price to estimate the acquiisition price of $5 is the wishful thinking of a potential acquirer. At $5 a share, only around $1 is assigned to the Bisha mine and the $201M working capital. Afterall the value of Bisha mine is net present value of future cash flow. So $5 a share is way too low and does not make sense!!
Why would Nevsun sell two solid assets at huge discount, at $5?? ..for what reasons?
If they do (Nevsun and the institutions); there is fraud.