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Bullboard - Stock Discussion Forum Roxgold Inc. T.ROXG

Roxgold Inc is a Canadian gold mining company. It is engaged in acquiring and exploring mineral properties. The company has two reportable segments; Mining operations and Exploration and evaluation of mineral properties, located in Burkina Faso. Its key asset is the Yaramoko Gold Mine, located in the Hounde greenstone belt of Burkina Faso, West Africa, and Seguela Gold Project located in Cote d... see more

TSX:ROXG - Post Discussion

Roxgold Inc. > Fortuna assets
View:
Post by templetooth2 on Apr 28, 2021 2:24pm

Fortuna assets

The Canaccord analyst's comments on the deal are most revealing. Or rather, his numbers.

He calculates a proforma net asset value for Fortuna of US$1,317,000,000.  0r $4.54 per share.

His model gives a gross asset value of $1,676,000,000 and then you deduct the usual things like tax, SG&A, etc.

Interesting: Yaramoko and Seguela are valued at US$467mm and US$514mm respectively, for a total of $981mm. That's 58% of the total gross $1,676mm.

So, in exchange for contributing 58% of the assets of the new company, ROXG shareholders collect about 36% of the equity. Do our managers deserve a raise? Or something else?
Comment by Consvestor on Apr 28, 2021 2:30pm
I will certainly be voting against the deal, but it's the mutual funds that will push this through.  
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