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Bullboard - Stock Discussion Forum Dundee Corp T.DC.A

Alternate Symbol(s):  DDEJF

Financial Services Healthcare Technology Asset Management Gold Silver
Dundee Corporation is a Canada-based holding company. Through its operating segments, the Company is a mining- focused investor primarily engaged in acquiring mineral resource assets. Its segments include mining investments, mining services, and corporate and others. Its asset base includes investments in precious and base metals projects across four continents. Its subsidiaries include Dundee... see more

TSX:DC.A - Post Discussion

Dundee Corp > United Hydrocarbon Value
View:
Post by Catscratch on Feb 03, 2022 12:40pm

United Hydrocarbon Value

I would be curious to better understand the value of Dundee's investment in United Hydrocarbon today.

When UHIC was sold to Delonex in exchange for some cash and a royalty in September 2017 the royalty was valued by Dundee at $168M (after non-controlling interest). At the time Brent was ~$50/bbl.  Today Brent is ~90/bbl and the royalty asset has a carrying value of $19M at Sep 30, 2021 (after non-controlling interest).

Either there were some very material flaws in the 2017 valuation or the asset is significantly undervalued today (perhaps both).

Any thoughts or estimates?
Comment by pierrelebel on Feb 03, 2022 6:38pm
From Q3 2021 release: "Due to the continued uncertainty of the political environment in Chad and increased deal risk associated with the ongoing Delonex strategic alternatives process, prompting a downward adjustment to the success probability metric which the Corporation uses to estimate fair value, UHIC recorded a $19,278,000 and $4,601,000 fair value loss on remeasurement of royalty ...more  
Dundee Corp