Originally posted by Sharetrader78
well off the top off my head and using my other holding EAR that has a 2mtpa plant and 1.7moz resource and command 130mill(which IMHO is very undervalued)
I would think if it was a done deal and funds accessed to do the deal was funded from the new merged companies scrip I would think a 150mill market cap won't be seen as overvalued when you include the plant + resource base(Gold Silver Zinc V etc) and large landholding..
but it really does come down to how the hell JP is funding the major FML purchase
"but it really does come down to how the hell JP is funding the major FML purchase "
You should read the terms again. There are production triggers for some of it and a very spread out payment schedule with the final payment 3.5years after the deal is finalized. I would say they could potentially pay a huge chunk of it with profits. Even if they have to raise it will be spread out over an extended time, asset sales also come into the equation.