Proxied Valuation of MAE processing millsThe valuation is the productive valuation as proxied to DPM 's proposed PEA for its new Serbian gold mine processing mill.
That mill has a 850,000 tons per year processing capability and its cost is $381 million US which is about $510 million in CAD.
The Pine Cove Mill is fully modernized state of the art.
The Nuggett Pond mill needed $41 million cad in upgrades to state of the art in the 2022 FS with all new parts.
I will assume $50 million CAD to fully modernize it to state of the art.
Processing capability of these two mills is 650,000 tons of gold ore per year compared with 850,000 tons for the Serbian mill costing $510 million cad to build.
Pro rata per ton processing capability , Maritime's two mills have a productive valuation of about $350 million cad.
Removing the $50 mi to upgrade Nuggett Pond and these two mills with enormous polymetallic processing capability besides gold have a $300 million cad current valuation .
Sprott estimated peer asset valuation which remains unchanged of 75% of NAV which gives these two mills a market value NAV of about $225 million .
We have of course also two tailing ponds with a 15 year life, a polishing pond, large storage facilities and a deep water port .....and about 500,000 ounces of gold resources
So, a direct buyout with no spin out frills would not be less than $0.35 per share .
We are worth much more than that from our own gold production and advanced polymetallic assets along with toll milling revenues from copper and gold .
GLTA