What is Tomagold's true value?Given the way the company has been managed, the decisions, dilution, high spending and lack of exploration, the market says $7 million, including our partial ownership of Monster (with Iamgold). We should be at least a $20 million cap company. If management is not going to change their ways, there will always be a deep discount.
A sneaky roll-back is about to happen.
First old LOT shares and new LOT shares, 1:1 ratio. If these new LOT shares open above $0.01 - 0.02 I'll be very surprised.
Now the roll-back. Assuming you believe our primary asset was Monster, then let's see what ratio of old LOT shares to Monster Exploration shares we will get. I'm guessing the ratio will be 20:1 to 40:1 (or worse).
Next question, will David and Martin be taking the same salary from Monster Exp. as they do from Tomagold? That means another $500,000 per year in their pockets between salaries, rent, bonuses, fees and expenses. We saw what happened to $2.5 million in 18 months - what will happen with $8 million to play with?
Will the Board of Directors start doing their job? Time wil tell.
Given the poor history, they and the BoD have a LOT to prove.
Their unique math means they are claiming a market cap for Monter Exp of $27.66 million when you take the 'fair value' of Monster and the 'purchase price' for Anik. The big question is: What will the market value these companies at given the combined entity is currently worth $7 million?
I'm still having a challenge working out the math on this one.