Nice wrap, page-28

First 28 Last

Share
Profile

Follow
whatsup

7,373 Posts.

51

17/09/14

15:27

Post #: 13988489
Share

Originally posted by miningmad ↑

As a shareholder in a few stocks that have hit the wall, never to recover, I empathise with CCU holders.
To any CCU holders reading this SXG thread, if you were keen to resurrect the company by putting in more capital earlier this year, it may be worth considering the following.
Let's assume CCU's assets, about to be in SXG's ownership, are worth $60 million (equal to CCU's spend on physical plant and equipment in developing Wonawinta; ie not allowing any value for their other assets such as tenements, resources and reserves, which are considerable in their own right). CCU stated they required $8 mill to recapitalise to make the required improvements to turn Wonawinta to a profitable operation. This would have cost each shareholder another 2.4c per share, based on 330 million shares on issue ($8 mill/330 mill). Now that CCU is gone, is there logic in putting this 2.4c per CCU share into SXG? The assets are exactly the same, and SXG has two other gold projects funded to production. If you accept fair value for CCU of $60 million, and given that SXG will have 3 billion shares on issue once the debt deal with Canadian backer Trenchstone is finalised (this is fully diluted - allowing for all options and warrants), then the Wonawinta assets alone are worth 2c per SXG share ($60 mill /3 bill). You can buy the SXG shares for 1.2c, which also includes SXG's other assets. If this logic stacks up, it seems that investing in SXG is a significantly better option than the previous alternative of recapitalising CCU.
I know through experience that investors can become tied emotionally to a company and can miss an opportunity in the process. If I am missing something here, I would be pleased to be corrected.

Expand

MM, FALLING gold and silver price, hidden processing issues to name but 2, GLTLHs.

SXG Price at posting: 1.1¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

WC8

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

C1X

iTech inks deal with Chilean lithium giant to progress Reynolds Range

CMB

Asian Battery Metals sniff second massive sulphide discovery at Mongolia's Oval play

There are more pages in this discussion • 2 more messages in this thread...

First 28 Last

Add SXG (ASX) to my watchlist

(20min delay)
Last $2.99		Change 0.000(0.00%)		Mkt cap ! $565.5M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
2	2611	$3.13

Sellers (Offers)

Price($)	Vol.	No.
$2.99	4275	2

Last trade - 09.56am 22/11/2024 (20 minute delay)

SXG (ASX) Chart

Nice wrap, page-28

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

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

iTech inks deal with Chilean lithium giant to progress Reynolds Range

Asian Battery Metals sniff second massive sulphide discovery at Mongolia's Oval play

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Nice wrap, page-28

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

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

iTech inks deal with Chilean lithium giant to progress Reynolds Range

Asian Battery Metals sniff second massive sulphide discovery at Mongolia's Oval play

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News