PRX 0.00% 0.4¢ prodigy gold nl

Salt you bring up an interesting point regarding the comment in...

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    Salt
    you bring up an interesting point regarding the comment in the latest presentation about ABM considering divesting the Twin Bonanza assets. This was also mentioned in the announcement on 19 August. It would seem that it is very much on the board's radar.
    So what would it be worth and how would affect the share value of ABM?
    Current resources for Old Pirate (115,000 oz) and Buccaneer (1.1 - 2.7 moz) average about 2.0 moz. If we are ultra conservative with cut-off grades and go to the low end, we have a little over 1.2 moz up for grabs. Lets say that a buyer factors in a cost per oz of $A1100 we get a profit margin of $A650 X 1.2moz = $780m.
    Remember I have been conservative here.
    So what's it worth? In the latest presentation which you highlighted Salt, the figures quoted by Tommy McKeith were between $US84 and $US289 ($A112 - $A385poz) and rising for average acquisition of in-production ounces.
    OPTION 1 DIVEST
    Once again if we take a conservative angle and say ABM could get $50 poz that would net them $60m.
    Bear in mind that a purchaser would have the majority of government approvals already sorted out by ABM also, which would minimise their start-up costs and times. Also there may be some usable plant there still. This would be a great result for all parties imo.
    An injection of $60m (16.1cps) would be a massive kick along the road to recovery. It would finance ABM as a serious explorer in a great under-explored area and have the additional effect of increasing their EV which is currently about $19 (MC $29m - cash $10m). If it could get the EV to $30m plus the $70 in cash, we end up with a sp of 26.8cps.
    OPTION 2 FARM-IN
    If we can find partner willing to stump up $130m for a mill, to receive 80% ($620m), we could get about $160 over the life of the mines.
    Holders might think that at these figures we would be giving away the assets too cheaply. But we should consider that they are worth nothing to us if we can't mine them.
    My personal views only. Anyone want to throw around other numbers?
    PB
 
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