OTCPK:PALDF - Post by User
Post by
sunshine7on Mar 19, 2019 1:35pm
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Post# 29506113
PDL Super-leverage...
PDL Super-leverage...For every US$100 rise in PoP, PDL earns CD$0.67/share. At 10:1 multiple, this is $6.70/share. At current PoP and AISC at $7-800 for 2019, current margin is US$8-900. SP should be $50-60! As cash reserves build, this could be higher.
The big question is what is Brookfield going to do with their 92% holding? Two options: release 40% into the market or private cross or buy it out. I see either option happening but status quo the least desireable for Brookfield as it leaves their asset at the whim of a thinly traded market.