New Golds Sale of its Blackwater Deposit Information below is taken from TD Bank( ,today). It addresses New Gold's sale of its Blackwater Gold Deposit to Artemis
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Sale of Blackwater: The sale price is cash of C$190mm,
Good price: We had carried the Blackwater project at a value of US$74mm (~C $100mm) based on a per-ounce credit. As such, the purchase price works out to 1.9x NAV plus other considerations. This is a good price, in our view. It is unlikely that New Gold would have moved ahead on its own with Blackwater,
Blackwater’s2019YE.-- Reserves Totalled --8..2mmoz, grading. 0.74g/t.
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My thoughts
At face value this works out to be : 190mil / 8.2 mil oz == $23.17 / oz
( almost double TD's valuation)
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My rough math calculations : ( Errors are possible )
Translating this to ESM .(gold only ) : 8 mil oz X. $23.17 = 185.4 mill
ESM( gold+ gold equiv ) 10 mil x 23.17 =230 mil
If Esm sells for 230mil with 168 mil share (now)-- we get 1.36cad / share
applying the Blackwater metrics
Hope I'm wrong in my analysis but !!!!!!!!!!