more re. valuation a) Over the 5 years 2017 to 2021 Capital Expenditure was $USMillion(47+28.3 + 21.8 +19.6 +16.2) for a total of $US133 Million or ~$Cad 3.65 per unit.
b) from the Q3-2022 balance sheet at Sept.30, 2022 Inventory (mostly readily saleable concentrate waiting to be processed) stood at $US 220.7Million while the ABL revolving credit facility debt stood at $US 151.9 Million, so effective debt is better than zero.
c) further to (b), cash-equivalent Inventory minus ABLdebt ~= $US(220.7 – 151.9)Million = $US 68.8Million, equivalent to ~$Cad1.90 per unit. So if the current offer were to be accepted Glencore would effectively be getting the CEZ business for better than FREE!
d) per the Q3 2022 balance sheet Net Assets Attributable to Unitholders stood at $US 170.6 Million or ~$Cad 4.65 per unit (even after the $30 Million impairment!).
e) although we are now being told that the plant is decrepit, it was still able to produce 53,000tonnes of zinc metal in Q3-2022 so the ~$1Billion-replacement-cost plant is far from a dead loss. A valuation of $500 Million would correspond to $10 per unit.
So in agreement with Eric’s, ZincDink's etc. assessments anything less that $5 per unit would be a steal and $10 per unit would be quite justified!