G&A - What is reasonable ?I have seen mentions that Dundee G&A were too high, and this for a long time. I would assume that the dividend paid on the prefered were also part of the equation. That part is now sold. Looking at the latest financial, their G&A are at 3.4 M/quarter. Now, this include Dundee Sustainable 300/quarter as well as Dundee Investment 350/quarter that should dissapear with its sale. So lets say 12 M/quarter.
This compares to their shareholder equity of 291 M. So roughly 4%. Is it too high ?
Shareholder equity is undervalued with Magna and TauRx shown as book value in this calculation. You can add 56 M to Magna value using latest quoted price of 1.40
Another way to look at it, we are in for their Minning investments. They are listed at 142 M on the financial, 200 M if we bump for Magna. 12 M /6% management fee appears expensive until you think about the 2/20 paid typically to hedge fund.
GLTA