Two informative posts from me on CEO.CA today.... @Tony1969 Insiders at NHK have bought 2,115,200 shares starting on the day after the last equity raise on May 3rd 2022. In other words from the day after on May 4th up until yesterday they have bought that amount of shares. Another 300k shares or so of purchases which I believe will no doubt happen if we stay this low much longer and they would have bought about 2% of the 122,800,000 shares outstanding. Not bad being that this has occurred in the past 4 months or so...Just some facts to ponder and evidence that those in charge are buying stock all the way down here. I bet they are not done....
@Tony1969 Latest Sprott Equity Research Report including the new RoyaltyCo: They are giving the project a $612mC NPV and a current.25X NPV valuation with a PT of $1.25C. This valuation is using a 2.7m ounce OP at 1.5 g/t. They also state: "We currently estimate C$32m at spot for today’s 2% NSR based on our model, before any future discoveries across the large 900km2 land package—a great starter royalty for the new RoyaltyCo in our view."
13 September 2022
Ticker: NHK CN SCPe PF cash: C$40m Project: Indin Lake Project
Market cap: C$42m Price: C$0.345/sh Country: Canada, NWT
REC. (unc): BUY TARGET (unc): C$1.25/sh RISK RATING (unc): SPECULATIVE
Today’s decision to grant a 2% NSR on Colomac and transfer to spinCo is an interesting one and provides
additional value for investors in the long-term. Interestingly, while Nighthawk is well funded (C$40m cash),
having a royalty here today has no impact to share price, albeit we think this provides good optionality for
future funding, especially in softer markets. Moreover, with the stock trading at 0.1xNAV vs the 0.3-0.6x
NAV recent royalty financings, we think this is accretive. We currently estimate C$32m at spot for today’s
2% NSR based on our model, before any future discoveries across the large 900km2
land package—a great
starter royalty for the new RoyaltyCo in our view. Another avenue could be the route of GBR, which saw
the royalty dividend out to shareholders, post asset sale for $200m—furthering shareholder returns. For
now, we make no changes to our model and maintain our BUY rating and C$1.25/sh PT based on
0.25xNAV5%-1850 from 1Q22 OP MRE of 2.7Moz @ 1.5g/t (4Moz @ 1.6g/t including UG) with C$23m
(US$10/oz) for the 2.3Moz outside our inventory. Belt-control with a global 4.0Moz @ 1.6g/t (2.7Moz @
1.5g/t pit-constrained) for a C$10m EV must be considered one of the best (counter-cyclical) options on
the market, all the more given we know this licence can produce, because its been mined before.
RoyaltyCo subsidiary offers shareholders additional value stream from Colomac
Nighthawk announces the formation of 100%-owned private subsidiary RoyaltyCo. Beginning with a 2.0%
NSR Royalty at Colomac and regional Indin Lake Gold Property (930km2), the company will focus on
acquiring royalty interests, investments and exploring accretive opportunities with the aim of generating
additional value for Nighthawk shareholders.