One Step Ahead

[Ignutz]

diamondintheruff ... here's a reasoned opinion.

The question was asked:

... Now if we say 400 million tonne resources, what will be the share price for a takeover? …

Comingman



See 1/3/05 post #8904095.

The following valuation estimates were excerpted from it:

............................................... Share Price ($ Canadian)
......................................... After ............ Buyout ............ Shore
.................................... Valuation ...... Late 2005 .......... Mine
Valuation ....................... 25% ................ 40% ............... 100%
Grade = 0.13 c/t
$75/c .............................. 0.44 ................ 0.71 ................ 0.16
$100/c ............................ 2.61 ................ 4.17 ................ 3.86
$125/c ............................ 4.77 ................ 7.63 ................ 9.89
$150/c ............................ 6.90 .............. 11.04 .............. 16.81
$175/c ............................ 9.06 .............. 14.50 .............. 24.34
$200/c .......................... 11.23 .............. 17.96 .............. 32.18
$225/c .......................... 13.39 .............. 21.42 .............. 40.22
$250/c .......................... 15.52 .............. 24.83 .............. 48.26
$275/c .......................... 17.68 .............. 28.29 .............. 56.53
$300/c .......................... 19.84 .............. 31.75 .............. 64.89

Grade = 0.17 c/t
$75/c .............................. 2.43 ................ 3.89 ................. 3.45
$100/c ............................ 5.26 ................ 8.41 ............... 11.41
$125/c ............................ 8.08 .............. 12.93 .............. 20.88
$150/c .......................... 10.88 .............. 17.41 .............. 30.90
$175/c .......................... 13.70 .............. 21.92 .............. 41.42
$200/c .......................... 16.53 .............. 26.45 .............. 52.12
$225/c .......................... 19.36 .............. 30.97 .............. 62.99
$250/c .......................... 22.15 .............. 35.44 .............. 73.82
$275/c .......................... 24.97 .............. 39.96 .............. 84.81
$300/c .......................... 27.80 .............. 44.88 .............. 95.92

- The stock prices in the above table are defined and calculated in the same manner as those in 1/3/05 09:36 post #8901185.

- Note that the Shore go-it-alone column reflects potential stock prices years down the road. Also, I would anticipate that the stock prices would actually be a little lower than those shown in the table above do to the need to issue additional stock to fund the prefeasibility study and other operational costs.

- I also caution, that in my opinion, the bulk sample probably has a higher grade and valuation than the average of the Star site as it was targeted for high diamond concentration.

- The minimum valuation required to economically justify the project is about:
$90/carat with a 0.13 carat/tonne grade
$70/carat with a 0.17 carat/tonne grade

Shorething

http://stockhouse.ca/bullboards/viewmessage.asp?no=8996754&tableid=0