Minotaur hoping to boost share value
PERTH (miningweekly.com) – Junior Minotaur Exploration has appointed Argonaut Capital to help extract value from its shares, with the company arguing that share prices were trading well below expectations.
Speaking at the company’s annual general meeting, Minotaur chairperson Roger Higgins noted that based on the Great White kaolin-halloysite project, in South Australia, alone, the company’s shares should be worth some 36c a share.
Minotaur shares were trading at around 14c a share on Wednesday.
Minotaur holds a 25% interest in the Great White project, with fellow listed Andromeda Metals holding the remaining interest. Andromeda’s market capitalisation was currently estimated at some A$543-million, implying a project value of A$724-million to Great White, Higgins said.
“The value discrepancy concerns your directors, so we have engaged the services of Argonaut Capital to help frame Minotaur’s future benefit from the commercial operation of Great White and provide advice towards realising appropriate shareholder value.
“We are confident that Andromeda’s publication of a definitive feasibility study, expected by about the end of this year, will also guide investor recognition of Minotaur’s share of cash flows and that too will stimulate closure of the valuation gap,” Higgins said.
A previously completed prefeasibility study at the project site had estimated pre-tax cash flows of A$1.9-billion and a pre-tax net present value of A$736-million for the 500 000 t/y operation with a mine life of 26 years.
In addition to the Great White project, Minotaur also holds several copper and gold tenements in Queensland.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation