Is 4.2 cents CAD per share a reasonable IPO Price ?This Phase 2 expansion of the SJ open pit mine, transiting to include mining operations below the pit in 2024 ( underground ) has a discounted value of 3300 m yuan.
At 7 yuan to the USD, the discounted NPV value is $450 million US which is $ 575 million cad.
Persistence owns 75% of this discounted net asset value which is about $425 million CAD.
Thats 4.2 cents per Persistence share .
Majestic owns 9.4 billion Persistence shares .
Its extremely unfair and deceitful of Richard to claim that there is no causal relationship between Majestic shares and Persistence shares.
Persistence holds Majestic assets which are currently valued at the market cap of Majestic which is about $100 million cad.
To state that Persistence can increase in value by over 4 times while it's assets are the assets of Majestic while Majestics share price remains unchanged is insincere at best.
Further, the acquired assets will be jointly owned by Majestic as the foreign partner in the JV deal which could add tens of thousands of ounces of gold to Majestics production .