Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I wish I could answer all those questions for you. Unfortunately none of us can. No (official) buyer has presented itself. There are many valuation methods out there. Just take your pick.
A PFS is all about what is "should be" and a DFS what it "will be". A DFS is a large undertaking and needs to be signed off by Qualified Persons. This requires engineering / consultancy firms to work on. Normally it is well advertised who is working on which study. So far I haven't seen either SolGold or any of the consultancies announcing there is work on-going for a DFS. So I am very sceptical about a DFS report not being far away. Maybe a start of DFS works is not far away, but I doubt that at the moment also.
I find the 30 million options quite excessive. Do we even know the performance criteria mentioned?
TheItalian, I fully agree with your comments concerning the SR.
Btw, I would assume construction can only start after a mining license has been granted. I am not aware Solgold has one or are even in the applying process. Pass me the salt jar please. Oh no, I might melt :-)
If we are only a year / year and a half away from construction some engineering better be ongoing. Takes some time and effort to design a multi billion dollar project. Financing also has to be in place by the time construction starts. Some people will be very busy for the next little while if construction is starting in 2024. If that is under the Solgold flag is to be seen of course.
Is 'shortly' the new 'imminent'? :-)
... the Company expects to publish the prospectus shortly and complete the Acquisition soon thereafter ...
Will the NewCo be called CornerGold or SolStone? :-)
Craig Jones was indeed the director appointed by Newcrest before he got pulled from the Solgold board.
I would actually think that Newcrest won't do anything regarding Solgold before having appointed a new CEO. The new CEO will also take a few months to settle in and (s)he won't start any M&A activities in the first few weeks. So Newcrest might be out of the game in the near term.
You-Know-Who, he who must not be named.
Jezzoo, someone has been trying to disrupt the board today. Admin cleared up those messages rather quickly. Only thing left are these kind of messages.
My vote is also casted and share your opinion that this will be an important one.
I am hoping these shenanigans are soon over and we either have our pay day or a nice and steady continuous rise of the share price.
I am with you. Lost in what this all means despite some explanations in provided links by some users.
anon3, I am wondering the same. Going to be interesting to find out what just happened.
So DC used 0.06c$ and CGP 0.052c$ per pound of copper for the valuation of Cascabel.
If not a typo the PFS addendum is still finalised this year, but does that mean the market will also be informed before the AGM?
- Additional optimizations being progressed for a PFS Addendum planned for completion in H2 CY22
- Cascabel project Definitive Feasibility Study (“DFS”) planned for completion in H2 CY23
Comparable Public Company Approach
The premise underlying comparable public company analysis is that the value of a mineral property can be estimated by analyzing the enterprise value of the public companies which operate similar companies or assets under similar circumstances. The value of the properties is assessed as a metric of enterprise value per copper equivalent pound, which is a risk adjusted metric of the reserves and resources contained within a given company’s mine site(s). When performing a comparable public company analysis, it is necessary to identify representative public companies. In determining the comparability of public companies, factors such as the primary ore, location, development stage, reserves and resources, grade, infrastructure and accessibility for the underlying commodity must be taken into consideration.
The valuation firm concluded that the most comparable public company was SolGold, which holds the
85% interest in the ENSA project (through its wholly owned subsidiary SolGold Finance AG). As a result, the market multiple of SolGold’s enterprise value per risk adjusted in situ copper pound identified drove the valuation range concluded in the report.
Historical transaction multiple approach.
The valuation firm performed market research to identify historical transactions where properties similar to Cascabel were acquired. The key considerations in identifying comparable properties were as follows:
- Exploration stage
- Primary metal is copper
- NI 43-101 resources technical report has been prepared prior to the transaction.
The valuation firm concluded that none of the companies or assets identified in the historical transaction search were as comparable to the ENSA investment, as that of SolGold identified in the comparable public company market approach.
Summary and conclusion:
The valuation of ENSA is based on the comparable public company multiple implied by the enterprise value of SolGold. The result was a value per risk adjusted in situ copper pound of $0.052. This value was then subject to a marketability discount of 5%. The model is most sensitive to the in-situ price of copper as determined through analysis of the market capitalization of SolGold.
At September 30, 2022, a 5% increase/decrease in the in-situ price per pound of Copper would result in an increase/decrease in the fair value estimate of ENSA of approximately $4.06 million keeping all other variables constant. Management continues to believe that the market approach is the most appropriate approach in consideration of various factors including the volatility in the in-situ value per pound of copper.
Cornerstone has their special shareholder meeting on January 9th. I am no expert, but I would assume it will take about a month to get all approvals after that. That's if the shareholders vote for the merger.
Killjoy: Bigdude6669
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