RE:RE:RE:Not selling snake oil, just my perspective.At first glance, all of these explanations may seem inconsistent. My assessment of AGG is done in the context of the options that are still available.
Most of the time, the market values companies in anticipation of what might happen. Obviously, these anticipations change over time. Whether for 2016 or 2020, I suspect those expectations were more favorable than what we have today. The rules you use to determine the value of AGG seem inadequate to me because they do not consider the changing context.
Quite frankly, permits comparable to Kobada are rarely bought out and their entry into operation is much more difficult to finance. 1,000,000 ounces of gold contained in a low-grade ore is not enough to interest B2Gold, Endeavor, and many other medium and large gold companies. Therefore, there are not many potential buyers and I assure you that none will pay $ 50 per ounce. However, fewer potential buyers does not mean that such a transaction is impossible. I
In my opinion, the current AGG shareholder will find its profit if Kobada is taken over by a small cap company. For it to be profitable for the shareholder of AGG, this transaction will have to be done through an exchange of shares issued by the purchaser with the guarantee of financing for the construction of the plant. Thus, the impact of the Kobada permit on the assets of the purchaser would be significant and all the shareholders would benefit from the profits generated by all the permits in operation.
Finally, if financial compensation were offered by the purchaser, I believe it would be 20 cents or less. This solution would undoubtedly be the least advantageous for the current shareholder of AGG. Regarding the scenario of a share exchange, the magnitude of the added value cannot be estimated as it is entirely dependent on the impact that Kobada will have in the buyer's portfolio. All this will have to be judiciously evaluated when an offer is submitted, if applicable.
Hopefully this post will be seen as constructive.