Quote:
Originally Posted by aznl3oi
but keep in mind PGM has ~117M shares whereas CUU has ~374M.
The selling price for PGm was $1.35 in cash and 0.08136 of a Stillwater share, which equals about 2.7$ per share. if i was offered this for CUU ,i'd be happy, however i think this would be a "low ball" to the management.
also i took a look at their 2010 RE of PGM and at the .2% cutoff, CUU does indeed have less copper, but has a lot more gold, silver, and moly. In addition, CUU cu equivalent grade is higher than PGM which will help reduce the cost of production. CUU has stated a cost of production of copper at negative 0.32$/pound by the sales of their by products.
I'm actually new to this so please take my research with a grain of salt.
|
I would just focus on the market capitalisation (not the share price). Or as a very general rule for copper, approximately $0.05/lb in the
ground. CUU has about 6 billion pounds of M&I copper, so 6 billion X 0.05 = $300 million, which is about half the current market cap. On this basis, I think CUU is still overpriced.