GBG 0.00% 2.9¢ gindalbie metals ltd

minimum 66.5cps

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    According to my calculations and the following assumptions the minimum price for the raising will be 66.5 cents.

    Assumption 1
    Ansteel will not have greater than 50% share in the company after the equity raising.

    Current Facts
    1. Ansteel are currently 12.6% shareholders of GBG
    2. GBG closed at 41.5cps with a mkt cap of c. A$213m
    3. Ansteel need to pay A$143.7 million
    4. Ansteels stake in GBG is currently worth A$26.8m

    Calculations
    1. Ansteels stake in GBG will be worth A$170.5 million
    2. For the stake to be less than 50% of mkt cap GBG needs to be worth at least A$341 million
    3. This represents a premium of 60.13% to the current market cap
    4. This equates to a SP of A$0.665 cps at the time of the equity raising at a minimum

    Note. If anyone sees a flaw in this calculation please point it out.
 
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