RE: Golden Cross happened on silver today23 Mar 2022 21:53
Putting results to one side for a second, this is one of those rare occasions in the junior space where this has been an exceptionally good deal for all parties involved.
UFO have just acquired an asset with a book value in excess of £5m+ for a upfront cash consideration of a mere £250,000, with the rest effectively equity on a deferred consideration basis.
That's a far far better outcome for existing holders than had Bill gone to the market for another 5m + fees, and our existing cash held in treasury is preserved.
Now it can easily be argued that the ultimate 'marriage value' alone to UFO in uniting a potential district scale group of PM deposits is worth far more than the 5m book value cost of the asset we have just added to our balance sheet.
With UFO already owning the major proven 'anchor deposit' within the wider district this was alway going to be a further value add to Alien in which they are the best placed entity to exploit the potential upside here.
if a wider multi commodity district play is proven up in either the immediate near term or in the future, Artemis will also share in all the upside, that they will gain from both the 'marriage value' aspect of the wider area being held under a single party ownership in any future development JV. They will also share in all future upside from the rest of our portfolio, so its a good deal for them and also a huge incentive to remain a commited member of the shareholder register for many years to come.
Alongside the assets, I feel part of the value the market sees here is in Bill as a proven deal maker, & on this score he has delivered with top marks since joining as CEO in relatively short space of time and the SP is 10 x what it was when he came on board.
I think we are still yet to witness the truely transformational deals that I believe Bill is capable of delivering over the coming year.
From what I've seen so far, I'd expect Bill to close at least one if not two cash generative deals over this time frame that should prove highly value accretive for shareholders.
I've taken another look at the drill plan and the outstanding holes and I wont start to speculate as to what the results will look like, all I know is, we are just scratching the surface here.
GLA
Sign In
Follow the stocks
