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If there's 140 million shares out, and Newmont takes it over @C $3.25 a share, then C$456 million is the takeout price, regardless of whether Newmont already owned 10%, 49% or 0% of those shares.
What I was trying to extract from that transaction, was a recent market price per 1 million tons of Cu equivalent. (Remember Anglo have a "right" to buy Racecourse at a "fair price." We need some real-world indicators as to what that price could be.) This GT mob had 4 million tons CuEq, and Nem's price paid per share gave a price (translated into British) of 66 million pounds per 1 million tons CuEq. I thought this could be an (optimistic) guide for any XTR buyout, should all the stars align.
What Cyberiachas says there is without mistake. I'm not sure I want to correct everyone else's homework!
Newsie, you're confusing Cu with CuEq. C'mon man! Special needs or not... you can be wrong all you like, but don't be sanctimonious about it.
Recently, Newmont bought out GT Gold, who have a copper/gold porphyry in British Columbia. The price was CAD $456 Million, or 264 million pounds. GT so far have roughly 4 million tons CuEq, so their buy out price was roughly 66 million pounds per 1MT CuEq. If XTR were to meet the same success and were bought out by Anglo after reaching 2MT Cueq, this would mean a shareprice of 17.75p. A little less than a triple.
Now important differences are - GT's average grade is 1.33x better than the 0.33% CuEq of hole 1. This is not insignificant. Also, GT's deposit has 5 or 6x more gold per ton than Bushranger. Don't ask me why, but precious metals get bought out for a much higher proportion of their in situ value than base metals are.
Anyhow, it's just another data point for comparison shopping.
Compare those 140,000oz to ngex.v's 8 million attributable gold oz, plus their 7+ million attributable tons of copper, all at a higher grade and a lower market cap than xtr.
NicetoMichu...that is seriously funny!
I have added a negative perspective. That's not nothing. :)
Stevemocal, 35 kms from the world's biggest underground copper mine is pretty bloody good in terms of locationx3. It's more or less brown fields, each infrastructure element is merely a 35km extension at worst. Anyhow, my point is not to big-up some other obscure stock, but just to encourage comparison shopping.
I would say Winu, from what we've seen so far, is not that special, although they made quite a song & dance about it. Whereas Oak Dam sounds awesome so far. Yours is a good question as well...I don't know the answer.
AA have the right to buy the property at a fair price. cla.ax costs 18 million pounds, and they have roughly 2 million tons CuEq, with an excellent high-grade core (although in a sh*ttier country.) Maybe the fair price for Bushranger would be a disappointing number to xtr shareholders?
The consensus here is an organised deception. And, why would AA pay US$500 million for 2 million tons of low grade copper when they could instead pay US$12 million today for 2 million tons of mostly oxide copper from wcu.v, for example.
The blind leading the blind.
That's too high a price for an undistinguished pre-discovery play. For 40% the price you could instead buy igld.cn who already have a million+ ozs of surface oxide gold, within a licensed operating mining area. On the road to making money or being worth anything, these guys are about ten major box-ticks ahead of these wishbone jokers.
I don't think revenue is their thing. Try Lloyds or BP.
I'll take your word for it. I don't really do corporate politics.
meeh I wouldn't say that...I think he saw a realistic chance at a Twiggy 2.0 outcome, and adopted a "my way or the highway" approach to get there. But eventually the other players all agreed on "highway" so he fell on his sword. I have no strong idea about which is best, but I know this Value Valley is sending me to an early grave.
Well I hope he doesn't die on the toilet.
0.3% is a rough limit, all else being equal, which it never is.
yes
They already have the 2MtCueq resource which you seek? Will you just handwave that away? And at 1/5th the cost of xtr! When you say I'm looking for an argument, well Yes! - I only seek an argument supporting Xtr's current market cap.
ok then, why not compare xtr with a stock I have no emotional attachment to because I didn't know it existed until half an hour ago - World Copper wcu.v They already got a roughly 2MT CuEq resource at~.4ish, they have potentially a very large oxide component to that. They have quite a studly board/management team, ...and a market cap of 8.5 million pounds.
jwoz - try not attributing sinister motivations to helpful strangers, it reflects badly on you.