Evaluation of Deal:
When it comes to cash there is no problem for Claude, they are up to their ears in cash, and paying down debt. They have no cash needs that would not be paid for by their high profits. I have talked with Claude yesterday, they could not deny that. Note this was in oven for 6 months and 2 other suitors. So the premium was much higher before Claude blasted from .60 to .93, and SSRI held steady.
This is how I see it. EBITDA wise they are equals in terms of deal (SSRI twice as much, get 2/3s of merger) BUT SSRI is much bigger (375 million in sales!). So if gold drops to 1100 for next 2 years, bad deal for CLGRF as Claude can make much better profits with low gold. And Claude has better track record last 2 years.
BUT if gold goes to $1500 in next 2 years, Good deal for Claude, as SSRI produces several Times more gold, and profits would dazzle at $1500 gold. BTW big deal: SSRI is USA gold, USD price is key for them (Nevada) , right now Canada gold is $1700 USD is 1260, HUGE difference. Why Claude make so much more EBITDA per oz.
That pretty much sums it up, at 1250USD gold a so so deal for both, and 1100USD great for SSRI, at $1500USD great for Claude.
Valuation Measures SSRI
Market Cap (intraday)5: 473.59M
Enterprise Value (Mar 11, 2016)3: 381.06M
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye Dec 31, 2017)1: 146.88
PEG Ratio (5 yr expected)1: -4.18
Price/Sales (ttm): 1.25
Price/Book (mrq): 1.05
Enterprise Value/Revenue (ttm)3: 1.01
Enterprise Value/EBITDA (ttm)6: 6.64
Financial Highlights
Fiscal Year
Fiscal Year Ends: Dec 31
Most Recent Quarter (mrq): Dec 31, 2015
Profitability
Profit Margin (ttm): -33.12%
Operating Margin (ttm): -6.03%
Management Effectiveness
Return on Assets (ttm): -1.52%
Return on Equity (ttm): -24.22%
Income Statement
Revenue (ttm): 375.32M
Revenue Per Share (ttm): 4.65
Qtrly Revenue Growth (yoy): -26.20%
Gross Profit (ttm): 36.20M
EBITDA (ttm)6: 57.34M
Net Income Avl to Common (ttm): -124.30M
Diluted EPS (ttm): -1.54
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 300.05M
Total Cash Per Share (mrq): 3.71
Total Debt (mrq): 212.36M
Total Debt/Equity (mrq): 47.49
Current Ratio (mrq): 3.51
Book Value Per Share (mrq): 5.53
Cash Flow Statement
Operating Cash Flow (ttm): 74.11M
Levered Free Cash Flow (ttm): 56.20M
AI
