Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Signal Gold Inc ANXGD


Primary Symbol: T.SGNL

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Comment by andre171on Nov 19, 2024 10:22am
106 Views
Post# 36319672

RE:RE:CHOICE : MAXIMUM RISK OR HOPE

RE:RE:CHOICE : MAXIMUM RISK OR HOPE
DoumDiDoum wrote:
andre171 wrote:
I admire DoumDiDoum’s tenacity, but I agree with others that the Nexgold takeover is probably the only lifeline for Signal shareholders. It is more than likely that no better offer has or will be on the table, which reflects concerns about the company’s sustainability.
Also look at the positive aspects of the takeover. According to Morgan Lekstrom, both of the projects (Goldboro and Goliath CGC) are expected to obtain final permits by 2025, which could command a multiple of 0.3 to 0.35 times the net asset value as considered by analysts for projects authorized at the FS stage. The NPV@5% of each of the two projects is +- 800M CAD for gold at $2300. This would give hope for a capitalization of more than 500M CAD for +- 135M shares after merger, or 3.7 per share of the new entity. With the exchange ratio of 0.1244, this gives 0.46 per SGNL share or more than 6 times the current price. You have the choice, take the risk of losing everything in the face of the potential to multiply your current assets by 6! Since the market does not give you more than 0.075 for the share price and the "mining environment" does not value Goldboro better, at least keep the hope of a short-term recovery by the valuation of the new entity. I have known promising mining companies which, in the same financial situation as SGNL, ultimately went bankrupt and for which I would have liked to benefit from an exit door as honorable as the one offered by Nexgold to Signal shareholders.

Andre, you are a NEXG shareholder so for sure you want us cheap!

Yes, I am a shareholder of Nexg but I try to be realistic, especially regarding unfortunate experiences similar to the one Signal could experience if the merger does not take place. I assure you that I have experienced so many disappointments with TML (at the origin of Nexg) that a more favorable report for SGNL shareholders would not affect me much! You will also note that I have never tried to present Goliath as being a better project than Gogboro and that I wrote that the latter was less well valued based on mining fundamentals.
<< Previous
Bullboard Posts
Next >>