The future is bright (in my opinion), page-15

First 15 Last

Share
Profile

Follow
Walter123

587 Posts.

17

06/11/18

23:34

Post #: 36410611
Share

Originally posted by Cashmeoutside ↑

MTR picked up 57.8m MOD ‘shares’ via a combo of shares and free options (231m SOI current, 289m diluted) in exchange for their 30% of T3. So really 20% of MOD for their 30% of T3. If you want to ascribe a value such as $26m - which was done based on the VWAP of the SP at the time that’s you’re perogative but I would argue the SP is not reflective of ‘value’ - either when the deal was struck or now.

If you think the project is worth $80m for 100% - reflective of the SP, then I’d suggest you go and have a look back at the project, the assumptions used in the PFS, and what has eventuated since in terms of drilling/JORC, met work and the likes. If it doesn’t change I’d suggest you exit this stock as the SP is probably overvalued if T3 is worth just $80m.

In my opinion we’ll have a NPV come out of the DFS of well north of $400m using a 10% discount rate and $3/lb Cu price. The return on equity, particularly for a major that has a balance sheet that allows for large proportions of cheap debt, will be much much higher.

There’s no question a vast amount of funding options available - I keep leaning toward a streaming deal rather than giving away equity but there’s pros and cons of both and we still have a ways to go before finalisation of the DFS and hopefully in the meantime a continuation of strong Cu finds.

Expand

Relevant.....interesting read.
http://www.miningweekly.com/article...y-cheaper-to-construct-than-to-buy-2018-11-05

Regards to all.

MOD Price at posting: 34.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

PH2

TechGen follows historic soil anomaly to bonanza grades including gold, copper, antimony

There are more pages in this discussion • 16 more messages in this thread...

First 15 Last

Add MOD (ASX) to my watchlist

The future is bright (in my opinion), page-15

Top Stories

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

TechGen follows historic soil anomaly to bonanza grades including gold, copper, antimony