GREY:ALXDF - Post by User
Post by
goldhunter11on Apr 19, 2018 10:56am
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Post# 27910929
Potential sale of non-core properties Wim and Hudvam
Potential sale of non-core properties Wim and HudvamThese two properties (see AZX/projects/Manitoba) has Cu, Zn, Au and Ag in various proportion, but in general term they can be described as follows.
- Wim: Cu/Au property, since these two metals dominate the deposit, with copper taking the lead. Using the current metal prices the value would be some $ 630M USD x 1.25 = Cad $787M (on the ground). Dividing by a factor of 20 (in-situ value of $67/ozAu) would yield a value of ~Cad $40M in-situ.
- Hudvam: Au/Cu property with Au has the lead role. Zn and Ag are in there but there are not significant contributors. Using the same current metal prices, Hudvam would have a value of $387M USD, or Cad $484M on the ground, or divided by 20 for a value of Cad $24M in-situ.
The above two properties would be worth $40 +24 = Cad $64M in situ, or $64/580MsFD = $0.11/s (amost the same as the 0.12/s offer as rumoured in the street).
The beast candidate as buyer for Wim and Hudvam is Hudbay Minerals (HBM). It has 2 mills in the vicinity (there is a good map on AZX website/Projects) and it look like they can use additional feed from Wim and Hudvam.
HBM should be able to afford $64M in cash (or in paper, or a combination of both) and should bring these two properties into production on short order to feed their mills.
$64M is a lot of cash (even 50% of this amount, i.e. $32M is plenty) for AZX to do wonderful things for exploring the Cadillac Break (without any dilution).
It would appear so obvious.
GH