OTCPK:VDMRF - Post Discussion
Post by
alfhope on Mar 13, 2023 6:09am
ratio 1:6
„Post by anotherguesson Dec 14, 2022 8:38pm 281 Views Post# 35172221 Blackrock vs VONE Blackrock deal announced, with Blackrock valued at $140m. I had to get someone else to rack this for me ... but this is what they came up with:
- Similar NPV of C$1.9B vs US$1.6B for VONE
- Up front capital is twice VONE at C$1.5B as compared to US$575MM (C$750MM)
- IRR is half at 18% vs 43% for VONE
- Mine life is 39 years which is similar to VONE if they expand known Inferred resources
- No new/unproven technology needed for VONE – lower operating and development risk
VONE has the better project ... same valuation on VONE is +$1!! Am I missing something??
*Long term holder“
I think SP. of Vone was manipulated (kept down) by whomever. In case of a sale, shareholders would have received 10 - 20 % of NPV (CAD 1.6 Bio.), which would be
CAD 160 - 320 Mio. (more than 10 times SP.). Now they have to be satisfied with 1 share of CERT (MC. CAD 65 Mio.) for 6 (!!!) of VONE (MC. CAD 11 Mio.). At the same time, according to the presentation, CERT will not make a profit until 2025 at the earliest, so will probably have to raise more capital for 2023 (?) and 2024. With the profit hopefully made from 2025 onwards, the construction costs for VONE can also only be partially borne. I realize that VONE cannot finance its project on its own, but it seems to me that
this deal (ratio 1:6) is clearly to the disadvantage of VONE shareholders.
VONE has a FCF of over CAD 300 Mio. for more than 20 years from production in 2028. What does CERT have?
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