Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Intchains Group Ltd V.ICG


Primary Symbol: ICG

Intchains Group Ltd is a provider of integrated solutions consisting of computing application specific integrated circuit (ASIC) chip products for blockchain applications and a corporate holder of cryptocurrencies based on Ether (ETH). The Company utilizes a fabless business model and specializes in the front-end and back-end of Integrated circuit (IC) design, the two components of the IC product development chain. The Company’s products include computing ASIC chip products consisting of ASIC chips, computing equipment incorporating ASIC chips, ancillary software and hardware, the products are mainly used in the blockchain industry. The Company had built a technology platform named Xihe. The Company has developed hardware models and several systems under the Xihe Platform, including a factory production test system, an after-sales data system, a computing server system and a batch management system.


NDAQ:ICG - Post by User

Post by goldhunter11on May 25, 2017 4:40pm
257 Views
Post# 26285039

A hypothetical offer from a rival

A hypothetical offer from a rivalWe all know about the low-ball offer drom ELD for ICG, let's speculate a rival offer that would be considered more superior.

Current ELD offer: Something like $544M in cash and ELD shares, using $1.12/s x 486Ms (not the widely used $590M with $1.21/s). As previously indicated this offer is somewhat similar to what G bought PRB Borden Lake deposit ($526M for ~4Moz). It's a greenfield deposit without any infrastructures, such as a permitted  mill, tailings, development/production ramp and services such as roads, power, gas, communication, etc...

ELD offer for ICG were  for the deposit of Lamaque Gold Project which would include Triangle and the satellite deposits including #4 Plugs, and the ramp (give ELD that)...but excluding anything in the northen part which would include  Sigma, Lamaque mines, then it could be considered as a fair offer and would have a better chance  for ICG shareholders' acceptance. The rest if ICG properties (Sigma, Lamaque and the Mill and tailings facilities), including the cash, would be spun off as a separate entity.

The above would set the scene for a rival offer. If G or AEM would come in with a package below.

Hypothetical offer from a rival (G or AEM):
- $600M (in shares) for the Lamaque Gold Project, plus
- shares of a spun off NewCo. This NewCo would hold all properties north of the Lamaque Gold Project, including the Mill and tailings facilities. The NewCo would keep the cash in the current ICG and will operate as an exploration company to continue drilling at Sigma and Lamaque (Deep) and some of the GRC targets.
- the rival company would provide $150M cash infusion for 15% of NewCo (or $200M for 20% of NewCo?). The rival company could give NewCo shares which could be sold gradually as required for cash to carry out its exploration requirement (G or AEM shares are quite liquid and can be sold readily for cash).
- A deal could be worked out for the mill to process the ores from Lamaque Gold Project, as JV operation, or NewCo could provide the service as a custom milling operation at reasonable costs, to make the deal more attractive.

This rival bid would be worth around 600+150 =$750M (or ~$1.54/s), but ICG shareholder would have a chance to participate in the exploration portion of the S-curve. It should be noted that Sigma RE has a potential to contain ~2.4MozAu, Lamaque  Main Plug Extension has 1.6Moz (Deloitte report) and the West Plug has 0.22MozAu (Historical) for a total of over 4MozAu.

Currently, ELD offer does not give any credit to this potential RE. Deep drilling would cost lots of money, but $150M should be a reasonable sum to give the NewCo a fighting chance to prove up a sizable RE (over 4MozAu).

This hypothetical offer would easily trump the current ELD offer, imo.

GH
   
<< Previous
Bullboard Posts
Next >>