Thursday, October 23, 2003 7:56:35 PM
Updated Market Cap per Resource Ounce (fully diluted)
GBN continues to appear undervalued both to Canadian Juniors and its S African Peers. GBN has $13.34 market cap per resource ounce vs. $34.06 for CBD and $30.53 for AGI. Continue to like all three stocks, i.e. GBN, CBD and AGI, as a core holding...
GBN also undervalued relative to its SA peers, IMO.
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GBN website now lists 99.4M shares fully diluted. I was using the info from the 6/30 Form 10-Q..., but the 99.4M is correct.
Here is the breakdown of the additional 4.5M shares previously not included:
1) SouthGold "bonus" shares 1.5M, these are for beating resource and cash cost estimate, GBN is being somewhat conservative and including these contingent shares which infers that the SouthGold purchase will have more resources at lower cost than originally budgeted under this agreement.
2) Hecla gets 1M warrant shares in exchange for GBN getting like amount Hecla shares, really no dilution here as GBN gets investment shares in HL, and HL gets investment shares in GBN.
3) My original analysis failed to include 504,000 broker shares from the Jan 03 PP financing at C$1.80.
4) The 2 new SA Directors got 424,500 shares at C$1.32, and management got 1M shares at C$1.50 (both granted in July 03)
Thus, only about 1,424,500 of new dilutive shares from Jun 30 to Oct 23, 2003. FWIW, the HL for GBN share warrants (2M total now) have been anti-dilutive since HL has gone up more in share price than GBN.
GBN continues to appear undervalued both to Canadian Juniors and its S African Peers. GBN has $13.34 market cap per resource ounce vs. $34.06 for CBD and $30.53 for AGI. Continue to like all three stocks, i.e. GBN, CBD and AGI, as a core holding...
GBN also undervalued relative to its SA peers, IMO.
_______________
GBN website now lists 99.4M shares fully diluted. I was using the info from the 6/30 Form 10-Q..., but the 99.4M is correct.
Here is the breakdown of the additional 4.5M shares previously not included:
1) SouthGold "bonus" shares 1.5M, these are for beating resource and cash cost estimate, GBN is being somewhat conservative and including these contingent shares which infers that the SouthGold purchase will have more resources at lower cost than originally budgeted under this agreement.
2) Hecla gets 1M warrant shares in exchange for GBN getting like amount Hecla shares, really no dilution here as GBN gets investment shares in HL, and HL gets investment shares in GBN.
3) My original analysis failed to include 504,000 broker shares from the Jan 03 PP financing at C$1.80.
4) The 2 new SA Directors got 424,500 shares at C$1.32, and management got 1M shares at C$1.50 (both granted in July 03)
Thus, only about 1,424,500 of new dilutive shares from Jun 30 to Oct 23, 2003. FWIW, the HL for GBN share warrants (2M total now) have been anti-dilutive since HL has gone up more in share price than GBN.
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