Jan. 13 at 4:27 PM
$CTGO - Contango Ore is set to acquire
$DVS in Q1 at
$4.33 a share for a market cap of approximately 400M.
It is an interesring deal that in some way should assist in accurately valuing silver mining companies and their stock.
Keep in mind, this deal is taking place under current market conditions.
It has been reported that Dolly Varden has approx. 65M ounces of silver, proven and probable reserves. This is an early stage mining company without significant cash or signficant assets, without significant sales, but it is in position to extract a signficant amount of silver.
$HL it has been reported has approximately 240M ounces of silver, proven and probable. That is juat under 4x the reserves of Dolly Varden. Hecla has around 100M in cash, reports approx. 3B in assets, has approx. 500M in debt and is projected to lost approx. 1.2B in sales in '25 -- thry are mature and well oiled machine of a mining company. But does it add up to a current market cap of 16.5B?
