Based On The Current NI 43-101 Resource Disclosures...
CMM @ $3.41 per share.
WTG @ $0.32 to $0.93 per share.
That said does WTG really have a value attached to it? Perhaps not, read this:
Given that Mr. Friskiy owns on the order of 74% of White Tiger Gold shares (see report for references), I would argue that a fair market price for White Tiger Gold does not exist.
Hopefully this will further help CMM shareholders make a decision in regards to this merger. Currently my decision stands at a firm NO to this merger. It's clear CMM is worth a lot more than WTG and therefore giving away our CMM shares for 0.40 WTG shares is an insult to our intelligence IMHO.
4 comments:
The problem with this analysis is that there is no value being given to things like WTG's access to capital, management team, connections to Polyus, and so forth.
Look, I totally understand you think that the above is all of no value but a strong case can be made that some portion of the marketplace thinks otherwise.
So if you want an honest evaluation of WTG's true market value, you have to accept that at least some portion of the investment community disagrees with you and factor that in.
BTW, something I mentioned in another thread about CMM trading applies here as well. And that is the fact that WTG trades on more trading systems than just the TSX. And a lot of that trading is hidden from our eyes.
Thanks for your post, but I disagree, this analysis is really that good.
I don't see how Polyus has anything to do with WTG. We are talking about the NI 43-101 Resource stickly for WTG, unless somebody plans on giving WTG some of Polyus mining operation(s)? Don't think so.
In regards to the management team, well seeing how little they are offering CMM shareholders, I don't see the light at the end of the tunnel for them.
I also don't like the fact Mr. Frisky owns 74% of WTG shares. The simple fact WTG went from $0.28 to over $4.00 is IMO a clear indication of some sort of price manipulation. Even 100 shares can alter the price a lot.
WTG is a supply constrained, deBeers type marlet. Because there is low turnerover, the share price can be whatever the majority holder wants it to be. Look atthe DOW or SP- the Fed is running a supply squeeze on low volume and jacking the indexes up. Once there is volume on WTG, there will be sever, very severe price depreciation. wTG has a fake market value, low volume and low turnover because the shares that can be discovered are easily bought by FiNinsky or co. At the ask.
Lose money to make money.
Fininsky is at his limit here, can be busted by a no vote. But, whats left of the mismanaged CMM afterwards. A stupid, MUtually assured destruction plan for shareholders and idiots in management.
Saying te
Here is a real market for WTG is like saying there is a tooth fairy who delivers presents for xmas. Get REAL
By John Helmer in Moscow
In the world of mining, it can be much more profitable to leave the gold in the ground, and take out the cash from booming share or equity value. According to Oleg Mitvol, the mine regulator for the Russian Ministry of Natural Resources until last month, Russian goldminers are guilty of investing in only one kind of digging — on the stock exchanges, where share prices are driven by gold reserves in the ground.
The paradox of Russian gold equity value starts with this: in terms of gold reserves, Russia ranks second in the world, trailing only South Africa. However, in terms of gold production, Russia is currently lagging in sixth or seventh place – behind China, South Africa, Australia, the US, Peru, and sometimes Indonesia.
For stock market hustlers, this discrepancy is treated as a positive – a disproportionately low production level relative to the resource base, suggests significant upside or growth potential. If a global or emerging market investment strategy recommends the gold sector for all the reasons that make the precious metal attractive in current conditions, then this anomaly, the reserve potential factor, should recommend Russian goldmining stocks for buying.
That is, unless investors suspect that Russian reserve potential is a mirage, a pig in a poke, or worse, a fake — that there’s a relatively high Russian risk that the local miners will delay the capital expenditure required to bring their new projects into production, and fill out their reserve totals by moving paper, instead of shovels.
http://johnhelmer.net/?p=1050
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