We can all rest easily KPNG, also have to love being called numbers!
On that note, I thought it was time to revert back to my atv valuation sheet for an update. Should any of you be interested... I came up with a project NPV for Touquoy of $78mil, when combined with CH $240mil. This includes interest at 20% for all of capex. This works out at an SP of 40c.
When introducing new equity the SP valuations are very badly affected. 50% debt/equity -SP was 15c. 90%debt10%equity- SP was 30c.
The valuation was done on an npv of 10% and a gold price apprecaition of 2% (not sure if this is normal but being a gold bull its its only fair!). Equity rasied at 6c and 20mil to relocate to CH and one year of lost gold production.
In light of my analysis, if we assume 50/50 debt equity and halve the NPV valuation, 7.5c is fair value for tomorrows trade..
ATV Price at posting:
4.0¢ Sentiment: LT Buy Disclosure: Held
