Sprott Report . Has anyone read it yet?? A few days ago Konik00 poster ,provided a link to A Sprott report on ESM.
I've been wading through trying to understand what it is concluding about ESM . To me it seemed fairly optimistic about the value of the project for either acquisition or development .
Thoughts???
Conclusion Excerpt below .(note: copper is 3.00/lb not 300!!)
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Recommendation: Initiate coverage with BUY rating and C$1.05/sh PT
Based on our NPV5%-1850/oz-300/lb Colnic and Rovina scenario of US$555m, we assume final equity is done at 0.2x NAV, after debt completion. We apply a nominal US$25/oz to the 3.2Moz outside our inventory, and add US$16m cash. This takes our 1xNAV5%-1850 to US$488m. Adding cash raised (US$166m) but fully diluting for the assumed equity raised generates a fully funded NAVPS of C$1.37/sh. We apply a 0.75xNAV multiple, which we believe is fair considering the considerably punitive dilution assumptions, and still significant re-rating into production (SCPe 1xNAV at first pour is +83% above our target price). As such, we initiate coverage with a BUY rating and a 0.75xNAV5%-1850/oz-3.00/lb PT of C$1.05/sh.