Massive Black Horse Chromite Discovery
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
Message: My evil twin posted a response to Park1 on stockhouse
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"LOU64. You say look at the wording. So a 20-1 would put DEBUT at what percentage of KWG right now. KWG is today at 0.09. Being generous, lets say half of KWGs worth. Which would make DEBUT value = 0.045 per share. Need a P/P. (0.045 * BY 20 = 0.90) and KWG drops to 0.045 because half the value is decreased. Then KWG can do a R/S themselves, then they are at 0.90. Then they both go down together, for the people to get in cheaper. Just a opinion???.
Hey Park,
I don't understand your presentation fully, but I think your premice is based on the assumption that 20 to 1 is somehow the comparative value of these two companies. If I understand part of it...your saying that because of this IPO (part deux) KWG is losing half of its value...wow! that's beyond my computing capabilities. It also defies logic as to why a company would do that to itself.
When I read the NR I understand that in simple terms, a share swap is being executed between DDI and KWG with shares valued at 7mil shX .30 and 21 milsh X .10 respectively. Flow through will be at .35 and warrants at .45 for two years.
Doesn't that tell us that when they start trading on the open market, DDI shares will be valued at .30 from the start and as such the dividend distribution of these DDI shares, to the KWG shareholders, on the date of record, represents approx 16.6% one time dividend, if the shareholder sells his new DDIs on the first day of trading.
Example
Mr Moneybags currently holds 2,400,000 shares of KWG which he bought for an average price of .10 per share; when the distribution occurs he will receive 120,000 shares of DDI valued at .30 per share or $40,000 of value. His total cost was $240,000 and his dividend return is valued at $40,000 which represents 16.6% return on his capital cost.
The value of KWG shares has been widely speculated upon but hasn't been firmly established by time-tested fundamentals or normal trading during cyclical production; we might be moving towards that but we're not there yet. The real value of the KWG shares will be established based on what the final take-over company is willing to pay for it...if a take-over doesn't happen, and we get to become a producer in a mine.....10 bagger min IMHO.
If we get passed that and the RR, the smelter, and the mine construction are done, then we look at the PEA for the price that the shares should be trading at, ($2.78 to $4.95 per share) not withstanding that by then, indicated resources may have been increased and the projected numbers even higher than the PEA has put forward.
DDI committed to further work and exploration which will probably support the price when the stock starts trading. If any news of discoveries are made, I suspect we will see an increase in demand for the stock. On the other hand, if KWG is taken out, DDI and CCC continue to exist in the afterlife and continue to build share holder value.
I don't know if I am interpreting this correctly but opinions and discussion is always welcome.
I don't understand your presentation fully, but I think your premice is based on the assumption that 20 to 1 is somehow the comparative value of these two companies. If I understand part of it...your saying that because of this IPO (part deux) KWG is losing half of its value...wow! that's beyond my computing capabilities. It also defies logic as to why a company would do that to itself.
When I read the NR I understand that in simple terms, a share swap is being executed between DDI and KWG with shares valued at 7mil shX .30 and 21 milsh X .10 respectively. Flow through will be at .35 and warrants at .45 for two years.
Doesn't that tell us that when they start trading on the open market, DDI shares will be valued at .30 from the start and as such the dividend distribution of these DDI shares, to the KWG shareholders, on the date of record, represents approx 16.6% one time dividend, if the shareholder sells his new DDIs on the first day of trading.
Example
Mr Moneybags currently holds 2,400,000 shares of KWG which he bought for an average price of .10 per share; when the distribution occurs he will receive 120,000 shares of DDI valued at .30 per share or $40,000 of value. His total cost was $240,000 and his dividend return is valued at $40,000 which represents 16.6% return on his capital cost.
The value of KWG shares has been widely speculated upon but hasn't been firmly established by time-tested fundamentals or normal trading during cyclical production; we might be moving towards that but we're not there yet. The real value of the KWG shares will be established based on what the final take-over company is willing to pay for it...if a take-over doesn't happen, and we get to become a producer in a mine.....10 bagger min IMHO.
If we get passed that and the RR, the smelter, and the mine construction are done, then we look at the PEA for the price that the shares should be trading at, ($2.78 to $4.95 per share) not withstanding that by then, indicated resources may have been increased and the projected numbers even higher than the PEA has put forward.
DDI committed to further work and exploration which will probably support the price when the stock starts trading. If any news of discoveries are made, I suspect we will see an increase in demand for the stock. On the other hand, if KWG is taken out, DDI and CCC continue to exist in the afterlife and continue to build share holder value.
I don't know if I am interpreting this correctly but opinions and discussion is always welcome.
Good luck to all KWG, DDI and ROF longs
Pear3 (evil twin to LP)
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