Inferred valuation for ARKS share of Stonepark ZINC18 Mar 2022 13:30
This is from 2019.
Fag packet inferred value of Arks share of Stonepark Zinc Project
As of June 2019.
N.B spot Zinc was around $2500
It’s now around $3800
A 50% plus increase.
Firstly, an article from June 2019…
ARKLE: “Alternatively, we could take the option to dilute (our share of stonepark . If we chose to do so, to put it in perspective, Group Eleven – or any other investor in the project – would have to spend a further 1M euro to take Arkles share in the project from our current share of 23.44% to just under 21%, 2M euro to take it to just under 19% and so on. If expenditures of that scale and beyond are being made in the project then we see the overall value of the project being re-rated,” said Arklkes chief executive Patrick Cullen..”
So, implies every 4.5% (roughly) is worth 2M euro.
Arks holding is 23.44% divide by 4.5 = 5.209 x 2M euro = 10.48M euro.
Converted to GBP at .84 = £8.8M GBP
Current MC is £2.5 M
So a 3.52 x bag increase from current .75
=2.64p per share
+50% for increase in spot Zinc
=3.96p per share.
Which is a 5.28 x bag from current .75
I believe the article figures stated above by ARK are the figures Glencore offered to Group eleven. Group Eleven turned it down.
This is pre commercial and based only on the 5.1mt inferred resource. Any resource increase derived from the current drilling towards the desired 10mt to make it commercially viable would see significant uplift to those figures.
The current drill is in a Zinc rich area that has already inferred a resource of 5.1mt. The feeling is when not if.
Current drill is seeking to find a mirror image of the Palas Green resource of 45m t.
Given the size of the prize and the fact G11 turned Glencores offer down as an undervaluation, I think it not unreasonable to assume a current value twice that of 3.96p to 7.92p.
That’s a 10 fold increase.
These figures exclude ARKs two 100 % owned Gold projects in Ireland that are now coming out of winter moth balling.
Something to think about.
NAI and as always DYOR etc
Sign In
Follow the stocks
