I'm trying to make sense of the cash / share value of Corona Gold based on information from SEDAR and recent news announcements... let me know what you think:
Maximum estimated # of shares currently outstanding: 21,451,701 (Based on SEDAR information from the MD&A for March 31, 2012. This figure is a total of the 19,471,701 shares outstading + the 1,980,000 options which were set to expire on June 19, 2012. Using Canadian Insider I noticed that some options were exercised but I'm assuming they all were just to be safe).
Cash in the Bank
From the May 23rd, 2012 news release: Murray John, President & CEO of Corona, commented that “Over the last several years, we have focused on realizing the value of Corona’s historic properties. With the completion of the sale of the Sugar Zone Property the process is now complete. Corona is in a strong financial position with approximately $16 million in cash and $10 million in marketable securities.
A simple calculation of the cash divided by # of shares =
.745 / share. This doesn't include any value for the shares of the "marketable securities" it holds... and doesn't take into account any other liabilities / costs for the company (running the office basically costs $500K/year according to recent figures... plus there might be a minor amount of tax $ owing for some transactions).
Yesterday's announcement of a share buyback seems positive. They say that they'll buy: "the greater of (i) 5% of its outstanding common shares and (ii) 10% of its outstanding common shares not including shares held by directors and senior officers of Corona and persons that beneficially own, or exercise control or direction over, more than 10% of the common shares..."
The way I read this, they *could* buy (i) 1,075,000 shares or (ii) approximately 1,400,000 (this figure doesn't include the shares controlled by Dundee Corp. or the directors... which together total about 7.2-M shares according to SEDAR documentation).
If all of this is correct... I'd hope that they'd be able to buy CRG to a minimum of
.75 / share. To me, CRG is now a screaming buy to about this level.
Comments? I'd love to know where my assumptions might be incorrect if that is the case!