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

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Walter123

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06/11/18

23:34

Post #: 36410611
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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.

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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

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

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