Post by
nizza on Jul 15, 2024 2:01am
Before the drilling program means before a capital increase?
I find bigmoney's assessment easy to understand. And I think it is important for shareholders to
discuss the value of a company.
This is especially true if it is sooner or later considered a takeover candidate.
We have already seen different opinions here on the board.
Some expect a hostile takeover, others a low-price scenario, and still others use figures from
other current and comparable takeovers.
One thing is certain, no matter what scenario comes, we shareholders will always be asked
about it.
And in order to be able to answer the question correctly and in the spirit of fairness for ourselves,
you need an assessment of the company's value.
Like bigmoney, I think it is right to base your decision on the valuation of similar takeovers; they
should be the benchmark.
Valuations that deviate significantly downwards should therefore be rejected in a vote.
Be that as it may:
If we receive a purchase offer before the drilling program is carried out, it will relate to the
resources that have now been proven and will be distributed according to the shares currently in
existence. After the drilling program, a resource increase of 50% is to be expected. A previously
assumed and necessary capital increase, for example in the form of the issue of 20 million
shares, would result in a dilution of 22%. Compared to the scenario before dilution with all other
assumptions being the same, 0.03 USD per p Cu or 0.04 USD per p Cu, the purchase price
would still be 14 or 15% higher for the individual shareholder despite the assumed dilution of
22%. The assumed resource expansion of 50% would therefore more than compensate for the
dilution. Disadvantage: Duration of 2-3 years.
In this respect, a timely takeover before a possible capital increase would be almost as attractive.