Maple Gold Mines Ltd V.MGM

Time for some math

[bluegrass3]

I noticed on another board one of our regular posters made a math error.  I won't name the poster out of respect for confidentiality.  But feel free to out yourself lol.

I am now going to post some of my own math for which i am open to criticism.

Since Yamana is mining the Malarctic mine and MGM aspires to be the next Malarctic, I thought I would try to do some sort of apples to oranges comparison.

Data from Yamana website:                             MGM
964 million shares outstanding                      321 million S/O
Market Cap approximately 6 Billion                MC 96 Million
Total Gold oz. 12 Million                                    Total Gold oz. 2.3 Million
Malarctic Gold oz. 4.8 Million.                           Malarctic Gold oz. 2.3 Million
Malartic gold is 40% of total gold ounces
share price $6.20

Here comes the what if part:
What if MGM proved up the same amount of Malarctic ounces as Yamana within 4 years.
What if Yamana's share price based on Malarctic alone is 40% of current sp i.e. $2.48
Could we extrapolate that MGM could be $2.48 if they prove up the ounces.

Think about that.  And i didn't even adjust for shares outstanding.  Also $6.20 is down from yearly high of $9.29

Cheers to all,

BG3

[theticket]

And, if MGM happend to be bought out prior to the Yamana deal it would have gone for roughly 1.7 as is.

[ardbegoil]

BG3.....Your math skills are much better than mine....The only thing I would have done different is adjust for the outstanding share difference which would then make MGM valued at 3 times $2.48 which is almost $7.50 ....Thankyou for posting your skills.....Your projection will probably be in sight very quickly and is valuabe as a guide to determine what a buyout price should be determined at 

[bluegrass3]

Hi Ard, I thought of adjusting for SO but thought I would be ultra conservative.