Last year I made a comparison of the value of Cinco Minas/Gran Cabrera and the value of El Rayo from Soltoro Mining that was taken over by Agnico Eagle for 25 million $ in post 6706. This is a realistic way of determining how much Cinco Minas/Gran Cabrera are worth when it's being taken over. I think it's time to start writing about values again and revisit post 6706 with new numbers.
Below I compare the flagship project of Soltoro (El Rayo) with Cinco Minas/Gran Cabrera. Although Soltoro has other projects as well, there's not much number information for them,so I concentrate only on El Rayo and Cinco Minas/Gran Cabrera. Important things to notice about the El Rayo project is:
1) It's in Jalisco State, just as Cinco Minas/Gran Cabrera
2) It's a Pink Sheet current company! Agnico doesn't seem to care much who owns these mining properties. They are just buying them up no matter where
it's from or who owns it.
I've used 1250 $ for the price of gold as it is today and 17.05 $ for the price
of silver for Cinco Minas/Gran Cabrera. I've used 1198 $ for the price of gold and 16,65 for the price of silver as that was about the price when Soltoro was taken over by Agnico Eagle. Check my post 6706 if you want to see how the value compares when I use the same price of gold/silver for both Cinco Minas/Gran Cabrera and El Rayo. Cinco Minas/Gran Cabrera is normally worth 5.5 times more than El Rayo from Soltoro Mining.
We also need to remember, that the higher gold/silver goes, the more these senior miners need to pay for the mines.
SRGE/MSJ:
Gran Cabrera:
Estimated gold: 212,223 x 1250 $=265,278,750 $
Estimated silver:106,363,224 x 17,05 $=1,813,492,969 $
Cinco Minas:
Estimated gold:112,187 x 5(assumed with 100% ore tested) x 1250 $=701,168,750 $
Estimated silver:14,319,064 x 5(assumed with 100% ore tested) X 16,65 $=1,220,700,206 $
Total worth Gran Cabrera and Cinco Minas: 4,000,640,675 $
Soltoro mining:
El Rayo:
Total Silver (open pit,measured+indicated): 22,900,000 x 16,65 $ = 381,285,000 $
Total Silver La Soledad (open pit,inferred): 1,700,000 x 16,65 $ = 28,305,000 $
Tota Lead (open pit,measured+indicated): 36,300,000 lbs X 0,9$ = 32,670,000 $
Total Silver (underground,inferred): 13,800,000 x 16,65 = 229,770,000 $
Total Gold (indicated): 28,800 x 1198 $ = 34,502,400 $
Total Worth El Rayo:706,532,400 $
25 million $ paid by AEM for Soltoro:
That is 1,000,000 $ for 28,261,296 $ worth of El Rayo-->
Cinco Minas/Gran Cabrera total according to what AEM paid for Soltoro: 4,000,640,675 $/28,261,296 $ =141,56-->141,558,995 $
Cinco Minas/Gran Cabrera price to be paid for joint venture (50/50): 141,558,995/2= 70,779,497 $
Cinco Minas/Gran Cabrera price to be paid for total take over: 141,558,995 $
Outstanding shares SRGE as of November 02 2012: 545,874,868
Share price SRGE/MSJ for joint venture (50/50)= 0,13 $
Share price SRGE/MSJ for total take over = 0,26 $
Below I compare the flagship project of Soltoro (El Rayo) with Cinco Minas/Gran Cabrera. Although Soltoro has other projects as well, there's not much number information for them,so I concentrate only on El Rayo and Cinco Minas/Gran Cabrera. Important things to notice about the El Rayo project is:
1) It's in Jalisco State, just as Cinco Minas/Gran Cabrera
2) It's a Pink Sheet current company! Agnico doesn't seem to care much who owns these mining properties. They are just buying them up no matter where
it's from or who owns it.
I've used 1250 $ for the price of gold as it is today and 17.05 $ for the price
of silver for Cinco Minas/Gran Cabrera. I've used 1198 $ for the price of gold and 16,65 for the price of silver as that was about the price when Soltoro was taken over by Agnico Eagle. Check my post 6706 if you want to see how the value compares when I use the same price of gold/silver for both Cinco Minas/Gran Cabrera and El Rayo. Cinco Minas/Gran Cabrera is normally worth 5.5 times more than El Rayo from Soltoro Mining.
We also need to remember, that the higher gold/silver goes, the more these senior miners need to pay for the mines.
SRGE/MSJ:
Gran Cabrera:
Estimated gold: 212,223 x 1250 $=265,278,750 $
Estimated silver:106,363,224 x 17,05 $=1,813,492,969 $
Cinco Minas:
Estimated gold:112,187 x 5(assumed with 100% ore tested) x 1250 $=701,168,750 $
Estimated silver:14,319,064 x 5(assumed with 100% ore tested) X 16,65 $=1,220,700,206 $
Total worth Gran Cabrera and Cinco Minas: 4,000,640,675 $
Soltoro mining:
El Rayo:
Total Silver (open pit,measured+indicated): 22,900,000 x 16,65 $ = 381,285,000 $
Total Silver La Soledad (open pit,inferred): 1,700,000 x 16,65 $ = 28,305,000 $
Tota Lead (open pit,measured+indicated): 36,300,000 lbs X 0,9$ = 32,670,000 $
Total Silver (underground,inferred): 13,800,000 x 16,65 = 229,770,000 $
Total Gold (indicated): 28,800 x 1198 $ = 34,502,400 $
Total Worth El Rayo:706,532,400 $
25 million $ paid by AEM for Soltoro:
That is 1,000,000 $ for 28,261,296 $ worth of El Rayo-->
Cinco Minas/Gran Cabrera total according to what AEM paid for Soltoro: 4,000,640,675 $/28,261,296 $ =141,56-->141,558,995 $
Cinco Minas/Gran Cabrera price to be paid for joint venture (50/50): 141,558,995/2= 70,779,497 $
Cinco Minas/Gran Cabrera price to be paid for total take over: 141,558,995 $
Outstanding shares SRGE as of November 02 2012: 545,874,868
Share price SRGE/MSJ for joint venture (50/50)= 0,13 $
Share price SRGE/MSJ for total take over = 0,26 $
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