Musings on Pacific Ridge
The initial title of the post was “Sudden Gifts” FWIW.
Just some musings on Pacific Ridge…
- Pacific Ridge recently released the last of the three holes drilled at Kliyul this past drill season.
- The results were not as good as the previous two outstanding holes.
- Today the share price closed some 50% lower than the high just a couple of weeks ago.
- The current Market Cap is some C$15.5 M @ 0.28/share
- The company recently announced a $10 M earn in deal with none other than the major Antofagasta on the RDP Project.
- Pacific Ridge has 8 projects…
What is the portfolio worth?
- What would Kliyul be valued alone if that project was spun out?
I would argue that Kliyul would be valued at at least C$15 M and is worth a lot more than that in light of:
0.28% Cu and 0.74 g/t Au over 291.7 m (KLI-21-036) – 0.75% CuEq* or 1.18 g/t AuEq**
• 0.30% Cu and 0.70 g/t Au over 316.7 m (KLI-21-037) – 0.75% CuEq* or 1.17 g/t AuEq**
• 0.17% Cu and 0.50 g/t Au over 342.0 m (KLI-21-038) – 0.50% CuEq* or 0.78 g/t AuEq**
Ps. I would bet Antofagasta would rather JV Kliyul than RDP but that Pacific is not willing to give away the obvious flagship project. Thus I reckon that whatever RDP is worth, Kliyul is worth more.
- What would a spin out consisting of the BC gold/copper projects, including RDP, be worth if spun out?
I would argue that it would be valued at at least C$10 M and be worth more than that.
- What would a spin out consisting of the four Yukon projects be worth if spun out?
I would argue that it would be valued at least around C$5-C$10 M
I would argue that this is yet another example of Mr Market handing out value (upside) for free.
I would argue that one is not even paying full price for Kliyul and get 7 projects including a JV with Antofagasta for free.
Ps. In a “hot” market one could likely see 2-3 X those valuations. This is not rocket science. This is a sentiment driven market. And yes they will raise money soonish but it’s still dirt cheap.
Note: Not investing advice.
