The deal values their share of the resource at ~$133 AUD per ounce
Compare this with CDV’s current fully diluted market valuation on 6,500,000 ounces at ~$37 AUD per ounce.
The same deal with CDV would give them a share price of $1.77. Even working on a %30 discount rate to account for capital expenditures gives us a fully diluted share price of $1.23 and per ounce valuation of $93 which is about where I think CDV should be.
The value is in the ground and isn’t going anywhere. Sentiment until recently for gold stocks has been in the bin which is where you want to be accumulating. Patience will be rewarded and full value will eventually be found.
CDV Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
