Shorething-reviewing possible buyout prices Hi Shorething,
Your post #8901185 last January was one of the most interesting and provocative posts ever posted on this forum. In light of where Shore Gold now sits, can we revisit it?
In that post, you gave a table of stock-price estimates at various valuations, various grades, and at various stages of development, the latter of which were:
1. Right after valuation (25%),
2. Buyout Late 2005 (well into the prefeasibility stage) (40%) and
3. Shore mining on its own (100%).
Looking at a valuation of $125/carat and a grade of 17 cpht, your share price estimates were:
1. $8.08
2. 12.93
3. $23.77
These numbers at $150/carat were as follows:
1. $10.88
2. $17.41
3. $34.33
The valuation was $135/carat, released on February 23, 2005, and the share price rose from $4.00 that day to $6.15 the next day. It then rose to $7.50 two weeks later with the announcement that Newmont was coming in with a $50 million financing at $5.50.
Your numbers weren’t far off, and at that time I believe the grade was more around 14 cpht. We don’t know a heck of a lot more about the overall grade across the Star at this point as we await results from the LDD (large diameter drills), although the geology holes have indicated the EJF is living up to Shore’s expectations.
However, there have been some significant changes to the overall picture. We have the merger with KRT now, a Cantuar feeder to possibly help elevate the grade and tonnage, more dilution, more cash, etc.
With a buyout offer being closer now than ever before, can you work your magic again and give us some new numbers to churn over in our minds?
Much appreciated,
Jesk