RE:Signor AndersonAt CAD $6 they are getting a discount. They are getting the 2 years time value of money that would have accrued to us (NSU shareholder) and they are getting the built in returns modelled into the NPV calculations.
The full NPV (which still builds in an 8% return to the acquirer) would be CAD $7.50.
In other words, Upper Zone Timok is worth CAD $6 per share RIGHT NOW and CAD $7.50 per share at start of production.
Off the top of my head, they are paying CAD $1.8 billion for expected cash flows (above all costs and expenses and cash outflows) of $3.5 billion.
And that is strictly for Timok Upper Zone. NOTHING ELSE!!!
So you could argue they are paying less than that for the upper zone and the remainder pays for the rest of NSU but even there we are being wholly undervalued.
Again, why do I care for CAD $6 when we will justify a valuation beyond CAD $10 or more in 2-3 years easily.
EASILY!!!
This is great for those who see a few dollars and want to cash in.
Bottom line...we need more $$$.
cigarbutts wrote: The buyer has to get a little discount off the NPV calculations for the to be developed mine, else why be encouraged to come bid. Sure the Cash is worth cash, and the other mine is also easy to value, over a short mine life remaining.
Be happy with this offer, a very decent premium to the Lundin bid, and designed to be a "topper" of any other offer.
If you want to get MORE you will have to wait till the deal closes and then get the $6Can :}.