this is why we took interest in gau, page-2

jaguar2001,

danr asked a q on GAU thread, so thought id post what i wrote to share what GAU may have that would get SLV interested, and wouldn't mind hearing from u on a few other points im keen to understand:


danr,
go to GAU's announcement dated 27 April 2007 Third Quarter Activities Report (the last one lodged).

on page 4 last paragraph says:
PMV has also commissioned an independent geological report from SRK Consulting in South Africa to provide an opinion on the previous drilling and an interpretation of the resources on the property. This report will be utilised in the company’s re-structuring and independent stock exchange listing as a result of the in-specie distribution of the shares held by GAU shareholders. SRK has calculated a global resource of 74,200,000 tonnes of Merensky Reef on the property at an insitu grade of 4 gms per tonne PGE.

So based on SRK's calculation, if there is 4grams per tonne, then 4grams x 74,200,000t * 0.035373 (conversion grams to oz) gives = 10,469,026oz

one must remember, platinum is made up of various metals which are worth $X which then create the platinum price. THIS WE DON'T KNOW YET. Assuming the platinum is the same composition, then price per ounce is currently $1,369. NOTE: PMV HAS 74% INTEREST NOT 75% - check october GAU announce).

Therefore the value of GAU's 74% is: 74% * 10,469,026 * $1,369 = $10.6b

Fully diluted (inc unlisted options) GAU's current market cap is only $27.6million.

so my question now is, assuming this whole notion of takeover - what price will SLV buy GAU for?

i would like to hear from other ppl, esp SLV ppl that know more about SLV than I do, about what SLV's 19.9% interest means and what is believed to be SLV's business model/strategy??

my take is that a top300 coy, that is a pure platinum play 's strategy is to acquire assets and not do JV's with others...........thoughts?


I know bugger all about SLV. interested to know whether SLV does any JV's with any other juniors?? whats SLV's business model/strategic plan??

the announcement from GAU on friday, which u may have read, smells and has written on it takeover from SLV IMO. word is GAU are spinning out there nickel project, and this week announced getting rid of the gold project so that platinum is left. why would u do that?

love to hear ur thoughts?

PS - strategically for SLV holders, if u do ur research and like the story and can smell a takeover as well, why wouldnt u buy GAU and wait for SLV to takeover which means u will get more SLV shares than buying on market now coz the takeover will be at a premium ie u buy GAU at 25c now, lets say takeover at 50c which means when working out cash and/or scrip in SLV your 25c has bought u 50c in SLV, if that makes sense, rather than buying what would be 50c today in SLV