re: Ann: WNI: Supplemental Circular re Takeov...
Some interesting notes on their own valuation (forgive my back of envelope style here) which would support a $6+ cash offer.
- it was completed back in early August when the $Au was $US1.06 - so you can add a 5% premium to valuation straight away
- the valuation does not take account of the circa $55M in cash that BRM has - so you can add another 40c/share for that
- the valuation DOES NOT include any value to any of the other 39 tenements (including the new coal ones) or the other Fe projects including:
? Duck Creek (50MT resource estimate of DSO) ? West Hamersley ? Mt Stuart ? Opthlamia ? Mt Florance
So you can add what you like here, but they would have to be worth at least 40c/share or more.
So if the valuation is of the range $515-$843M
= $540M - $885M (on the fall of the $Au)
+ 55M in cash
+ $50M (at least) for other tenements (IOH just sold 50MT to MRL for $42M)
= $645M - $990M
or = $4.47 - $6.87
I'd be using their own numbers right back at them :)
BRM Price at posting:
$1.90 Sentiment: Hold Disclosure: Held
