Value Microcaps Junior Miners

[dr_airtime]

SMT.TO - Found it.

Dia Bras (former name of Sierra Metals) acquired 82% of Yauricocha for for equity value of USD $285.86M in 2011. That is CAD $365M at today's FX which compares to current trading market cap of SMT.TO of CAD $199M.

Long term commodity price assumptions would of been higher back in 2011, but SMT.TO has developed mine for long term operations, turned it around, and discovered the Yauricocha Zone so perhaps it could be sold for the same value as purchased as a starting point.

So if 82% of Yauricocha can still be sold for $CAD 365M, Sierra's other mines must be worth at least $CAD 35M for $CAD 400M total which would be a double from today's market cap of $CAD 199M.

http://s2.q4cdn.com/485819848/files/doc_news/2011/03-04-2011.pdf

The PR is confusing. Not sure how Dia Bras acquired Corona for an equity value of less that Corona was trading on the Lima exchange.

There is also the issue of $CAD 64M in net debt at 31-Dec-15 but this should reduce through 2017 as cash flow is generated. Other properties could be worth more, etc.