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

Bullboard - Stock Discussion Forum Afferro Mining Inc AFRIF

GREY:AFRIF - Post Discussion

Afferro Mining Inc > The Base is Set
View:
Post by LTGoldBull on May 22, 2013 8:12am

The Base is Set

At least this "Formal Offer" sets a base and floor price on AFF assets, though still not reflective in trading prices as it is still not official until regulatory filings are complete and notices for agm's etc.

So happy in some ways the floor is set at 80p cash plus whatever premium is given on the time value of the 40p convertible plus 8% over the 2 years. SP imo should be at least a 90p reflection of this deal.

I see Alison Turner of Panmure Gordan is not receptive to the new 80/40 offer, as it presents less AFF shareholder options plus the offer itself way undervalues assets of Afferro which they currently rate at 279p nearly 3x this bid value less the Afferro Treasury cash. Understandable but factor in the current state of the juniors and...

" Alison Turner, analyst at Panmure Gordon.

She stressed that the offer "considerably undervalues the company", explaining: "The 120p offer notionally implies a premium of 69% to [Tuesday's] closing price and values Afferro at $190 million (£125.9 million), or an enterprise value of c. $105 million after taking into account Afferro's current cash.

"However that compares to our valuation of the Afferro asset base of 279p per share ($440 million) and as such we believe that the IMIC offer considerably undervalues the company."

My hope is still in the "White Knight" scenario, after others see the low valuation proposed here. Posco, first comes to mind as we have yet to here details of the proposed MOU due by end 2Q. Assuming they had "Data Room" access for the MOU in order to make a decision towards a Project Level Investment, I believe they may counter at a minimum 120p cash for starters.

Only 2nd or 3rd inning after the start of the game, this past years end! Cheers, Mark
Comment by Probability on May 22, 2013 9:10am
LOL , The 5 or so of us who bought this over the last few months get paid 
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities