IPO Sinogold, AGM 2022, Timeframe, Valuation, Dividend, Sinogold is to be listed at HKEX to collect money for mine expansion. The completion will take at least 3 months from the submission of the documents.
It also requires the " written approval for the Proposed IPO from its arm's length shareholders holding at least 50% of the issued and outstanding common shares of Majestic (the "Majority Shareholder Approval") Submission of application to HKEX: 03/30/2022
Earliest possible IPO start: 06/30/2022 (3 months)
AGM (Shareholders Meeting) 2021 Announcement: 09.08.2021
AGM (Shareholders' Meeting) 2021: 08.09.2021
AGM (Shareholders Meeting) 2022 Announcement: ?
AGM (Shareholders' Meeting) 2021: ? My conclusions:
I'm not an expert, but I think MJS could pay for the mine expansion itself with 40mn cash and an estimated net income of 20mn per year.
So I think a dividend is likely to
- involve the shareholders in the success of the company
- justify the IPO of the subsidiary Sinogold / or only in connection with a dividend does the collection of new funds make sense.
Key figures I estimate for the 2022 financial year:
ounces produced: 40,000
once sold (minus smelting fees): 35,000
Total production cost: $750 per ounce
Average annual gold price: $1850
EBITDA: $38.5M
Net Income: $20M
Share Price= $0.3
P/E = Share Price / (Net Income / Number of Shares)
15 = $0.3 / ($20 million / $1.05 billion)
Dividend= $0.01 per year
Dividend Yield = (Dividend / Stock Price) *100
3.333% = 0.01 / 0.3 *100
Comparison (both pay dividend):
Barrick Gold PE Ratio: 18.66 for May 12, 2022
Dividend yield= 2.30%
Newmont PE Ratio: 52.23 for May 11, 2022
Dividend Yield= 3.22%
Regards