Here I am going to assume that DE2 has been identified and make the further assumption that the market will "assume" that DE2 will double our tonnage.
The Blue Sky component is the variable most difficult to determine but in the table below, our "buy-out" value represents Blue Sky.
| NI Equilalent |
2.92% |
2.92% |
2.92% |
2.92% |
| |
|
|
|
|
| NI Price / LB. |
$ 10.00 |
$ 10.00 |
$ 10.00 |
$ 10.00 |
| |
|
|
|
|
| F/D Shares |
134500000 |
134500000 |
134500000 |
134500000 |
| |
|
|
|
|
| Other Properties |
$ 1.00 |
$ 1.00 |
$ 1.00 |
$ 1.00 |
| |
|
|
|
|
| |
|
|
|
|
| Tonnes Ore |
9500000 |
9500000 |
9500000 |
9500000 |
| |
|
|
|
|
| Buy-out Value |
10.0% |
20.0% |
30.0% |
40.0% |
| |
|
|
|
|
| Gross Metal Value |
6102800000 |
6102800000 |
6102800000 |
6102800000 |
| |
|
|
|
|
| Share Price |
$ 4.54 |
$ 9.07 |
$ 13.61 |
$ 18.15 |
| |
|
|
|
|
| Goodwill |
$ 1.49 |
$ 1.49 |
$ 1.49 |
$ 1.49 |
| |
|
|
|
|
| JV Land VALUE |
$ 1.36 |
$ 1.36 |
$ 1.36 |
$ 1.36 |
| |
|
|
|
|
| Cash & Warrants |
$ 0.47 |
$ 0.47 |
$ 0.47 |
$ 0.47 |
| |
|
|
|
|
| Other Properties |
$ 1.00 |
$ 1.00 |
$ 1.00 |
$ 1.00 |
| |
|
|
|
|
| S/P Should be |
$ 8.86 |
$ 13.40 |
$ 17.94 |
$ 22.47 |
I would therefore expect that subsequent to discovery of DE2, contingent upon visuals provided, our share price will initially move within the range of $8.86-22.47 with a likelihood of it being somewhere in the middle.
Bring it on.
Cheers,
Milsy1
