One newsletter writer used the following calculations to determine that the original bid of $3.39/share placed the buyout value of $131/ounce.
At $4.80, this would be a valuation of $185/ounce. He is only using P+P reserves.
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Canplats 10-09
Prelim Assessment
($750Au +$ 13.50Ag)
Camino Rojo site
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P+P Reserves
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1.71 mil oz (M&I oz,which we treat as P+P)
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Shares outstanding
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66 mil (fully diluted)
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Spot Gold Price
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$1,100/oz
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% of Spot Buyer willing to pay/oz
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61% = $670/oz
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Minus Life of Mine (LOM) Cash Cost/oz
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$340/oz (net of 900K/yr Ag)
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Avail to pay per recovered oz
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$330/oz recovered
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Estimated Recov Oz
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1.28 mil = 75% P+P
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Total Bid Value
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1.28 x $330 = $422 mil
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Minus Devlop Capex and on-going per recovered oz
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-$134 mil to Develop
- $64 mil ($50/oz)
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-$198 mil
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Bid Value less Adjustments
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$422 mil - $198 mil = $224 mil Net Bid
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Net Bid per share
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$224 mil /66 mil = US$3.39/shr
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Price /P+P oz
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$224/1.71 = $131/oz
