RE:RE:RE:RE:Take the money?From YAHOO, divide those targets by 3X still makes money
Spinco is an exciting wild card because it is highly leveraged to gold which is moving to US $3,000/oz. My financial model considers 105k oz/year production (for FC, SA and LC), currently guided cost of sales near US $2,000/oz, 15 PE, 10x post reverse split diluted shares of 126.7 million and pro-forma share price at initial issue of US $0.44.
· US $2,400 gold implies after tax US $0.20 EPS, US $2.98 SP and 577% gain.
· US $3,000 gold implies after tax US $0.58 EPS, US $8.67 SP and 1870% gain.
This analysis does not include Cerro de Gallo which could add another 80k oz/year production over 16-year mine life.
While I am unhappy with the fire sale price of Magino (5% AGI equity), I am quite happy with owning Spinco under the proposed terms, now that I better understand what the Spinco numbers project and being in the early stage of an historic gold bull market. Get your Spinco shares now while they greatly discounted. I am officially bullish again.