IMPLIED VALUES EXCLUDING DRILL RESULTS4 Sep 2020 09:50
For all those new here, just reposting my earlier note on implied values.
This is the way I see ( for my own planning) the implied values BASED SOLELY on the expenditure by Newmont. Obviously the market values to be significantly higher than implied values below once the drill results are built in:
Currently, the total shares in issue are as follows:
Total 150m shares
Newmont 29.8 m shares (19.9%)
Others 120.2m shares (80.1%)
NM will initially pay us $2m plus spend $10m for additional 31% increase in their stake.
So $12m represents 31% additional stake in Omi.
This gives implied gross 100% value to be approx $40m.
The revised shareholdings will be:
Total 254m shares
NM 134m shares (51%)
Others 120m shares (49%)
The implied gross value of $40m ÷ 254m shares will give us an implied value of around 16 cents or 13p.
Now take take the next level of expenditure. NM will pay us a further $2m plus spend $20m in return for increasing their stake from 51% to 65%.
i.e. they are giving away $22m for an additional 14% increase in their shareholding. Therefore the gross 100 % value becomes $157m.
The revised shareholdings will be:
Total 343m shares
NM 223m shares (65%)
Other 120m shares (35%)
The revised implied gross value of $157m ÷ 343m shares would give us an implied value of 46 cents or 39p.
Now, these are just implied values based on what NM are going to spend and obviously does not take into account any drill results. As and when the drill results come in one should see significant re-rate.
I believe there is great potential here.
I have been analysing the slide on page 10 of Omi presentation. To me this gives a good idea of the growth potential (from APTA).
(Bear in mind APTA is 2km long and Omi has more than 200 square km of land area)
APTA has potential to grow both to the North and the South where the other two targets are shown on the slide on either side of APTA. If the results are positive, this 2km of APTA could extend to become a very long strike length corridor of approximately 7 km to 8km and if the other two targets also extend outwards then the strike length could possibly get even longer.
The Omi project shows the potential of La Cejita which from slide 10 appears to be of a magnitude of some 8 to 9 times that of the current size of APTA.
If, AS I SUSPECT MIGHT HAPPEN, Apta and Charascalla COULD actually join up across the intervening ground to form one MAJOR deposit.
Please also DYOR
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