Generation Mining Ltd T.GENM

Very Interesting!!!!

[tarsands]

Upon a feasibility study being prepared and the management committee of the joint venture making a positive commercial production decision, as long as Stillwater has a minimum 20% interest in the Property, then Stillwater will have 90 days to exercise an option to increase its participating interest in the joint venture from its current percentage up to 51% (the “Percentage Differential”) by agreeing to fund an amount of the total capital costs as estimated in the feasibility study, multiplied by the Percentage Differential, in addition to its pro rata proportion of costs that it would fund at its current participating interest level. Should this option be exercised, Stillwater would also take over operatorship of the project at such time.

[Ebankbank]

So for numbers people out there, what would our share price be if they exercise their option to the 51% with billions in the ground what is my investment worth ?????

[jakebrick]

Slide 12 here: https://www.genmining.com/site/assets/files/3781/generation_mining_feb_4-_2021.pdf If we assume the capital cost is $600M (as it seems like it will be, based on the Gerry Knoll interview), then SBSW would pay .31x600M = $186M (to the company) to get back to 51%. At this point, the JV company would have about $186M in the bank. GENM would own 49% of that, which is $91M. Current

[Ebankbank]

So let's say 2 billion in the ground with more potential 1/2 of that after capital build is 500 plus million profit what should our market cap be then into share price. 

[jakebrick]

That basic math seems correct and conservative, which is a good thing. To equate 500M future profit to a market cap is not easy, but if you choose a high discount rate, 10%, and assumue there will be 10 years of profit (for GENM portion) of $50M, then the NPV is $307M. Since a lot of things still need to go right before profits are being made, I would say that should be discounted about 50%, which

[StockDoc60]

just a reminder that on Jan 28th Prussiaprofit posted this : Haywood with buy recommendation target of 1.75 CAD https://clients.haywood.com/uploadfiles/secured_reports/GENMJan282021.pdf?inf_contact_key=464ae9849f3116a53c876f3d52ac8550680f8914173f9191b1c0223e68310bb1 ------------- Hayward seems to think it is a double form here !

[jakebrick]

As do I! And as the level of confidence increases (or decreases) that this will become a working mine, the share price will react accordingly, with time. I don't personally beleive the price will change much with a positive DFS - I think that is largely expected and built into the price at this point. I also don't think SBSW will actually buy back in. They will either pass or buy the

[StockDoc60]

Sibanye-Stillwater Weighs Buying Copper, Other Metals Amid Clean Energy Trend From a Wall Street journal article in January 2020  --------------------- If this article telegraphs their intentions ,then maybe they have their sights on GENM for a takeover . Not sure if they consider it "operating " now or after " mine is built "(  Then again , is there enough

[YQTlanding]

IMHO $2 US or Canadian funds is way to cheap for my vote!

[Ebankbank]

Thanks for the overview and the numbers, awesome. I am hoping it takes off like Marathon PGM did. Then like it said in past post condo on the beach rather than across the street from the beach.