jv - sp value ratio with pdy / agu

Cut and Paste from the PDY thread...

As promised - feel free to comment and check your own figures as I am not 100% sure I am correct - could have missed some stock / oppies or a decimal place or something!!

Padbury Fully Diluted (Current as at last quarterly 30/9/10)
Ordinary Shares - 1,366,430,586
Listed Options - 466,959,673 (ex price 2c) $9,339,193
Unlisted Options - 55,000,000 (ex price 4c) $2,200,000
Unlisted Options - 662,000,000 (ex price 1c) $6,620,000
Unlisted Options - 22,000,000 (ex price 1.5c) $330,000

If all options converted cash received will be $18,489,193 and total shares on issue will be 2,572,390,259. Cash at bank as at 30/9/10 $2,118,000. Cash backing per share $0.008.

Aurium Fully Diluted (Current as at last quarterly 30/9/10)
Ordinary Shares - 297,550,002
Listed Options - 113,050,000 (ex price 3.5c) $3,956,750
Unlisted Options - 5,333,333 (ex price 5c) $266,666
Unlisted Options - 5,333,333 (ex price 8c) $426,666
Unlisted Options - 5,333,333 (ex price 11c) $586,666
Partly Paid Shares - 70,000,000 (payable 1.9c) $1,330,000

If all options and partly paid shares converted / paid up cash received will be $6,566,748 and total shares on issue will be 496,600,001. Cash at bank as at 30/9/10 $2,961,000. Cash backing per share $0.019.

Now assume for this calculation that the total value of the JV (and I mean the first 500MT JORC) is $100M (Irrelevant so no need to comment - read further!). PDY own 70% of the JV and AGU own 30% of the JV. Dividing each companies value of the project by the number of shares on issue you get $0.0272 per share for Padbury and $0.0604 for Aurium. This represents a ratio of 2.2205. In order to take this in context lets look at todays closing price of PDY ($0.030) and AGU ($0.044). If you were to apply the ratio of 2.2205 to PDY then AGU should be trading at 0.066. It appears AGU is lagging PDY in terms of SP value by some 2.2c....

Now here is the test - replace my value of the project with yours (mine is clearly incorrect - still working on my own figure) and lets see what the SP should be for both stocks.