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Coeur San Miguel Corp. Message Board

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  • Reply to

    Spinco value

    by fittycentmo Jan 1, 2015 11:55 AM

    agree

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    You are waaaay off. First, Sleeper is just a #$%$ low grade resource with a value of about $5-10 per oz at this stage. Sure, if gold reaches $1400 then Sleeper is worth $15-20 per oz.

    I agree that the 0.02016 formula is a good deal here since CDE will recover as Silver/Gold moves higher BUT IT MUST MOVE HIGHER !!! So assume $7 for CDE (not $15) and you are looking at
    $ 1.44 + .26 cents = $1.70

    When ???? Maybe by July 2015.

  • Reply to

    Spinco value

    by fittycentmo Jan 1, 2015 11:55 AM

    Yes, you want to hold CDE. This is going to $6.50 by April. Spinco's low grade resource is worth a few bucks per oz at $1190 gold.. like all the other #$%$ grade miner stocks. When go hit $1400, yes, then you are $15-20 per oz. Huge leverage. Spinco is just a lottery ticket.
    High risk.

    With the 0.2016 share of CDE you will see $ 1.30- 1.50 this year and if Spinco throws off 25 cents then that will be an added dividend when they issue these shares in a few months.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    I understand where you get this assumption from but you need to read the 8-K SEC filing.

    Mitchell Krebs - CEO of Coeur stated this on the conference call on Dec. 17. " Paramount’s Nevada assets will be spun off into a separate public company and Coeur will contribute $10 million in cash into that spinco and receive a 4.9 percent interest in that entity."

    The 8-K tells a different and more accurate story.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    $8.53 mil loan to PZG contributed to Spinco. You are correct about contributed.

  • Reply to

    Spinco value

    by fittycentmo Jan 1, 2015 11:55 AM

    I agree with the Sleeper statement. $30 mil sounds more like the land value for all holdings. Buying depressed properties become profitable only when the market returns. Spinco will need more than 10 mil to develop properties and wait for gold to hit $1400 again. Where does the operating capital come from? Sounds a lot like PZG. Do you see a difference? Also agree with sell Spinco; hold CDE

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    $1.47 mil is for the stock if the deal goes.. The balance is a loan as clearly stated in the SEC filing. The confusing thing is the loan is to PZG Per the agreement PZG is to contribute the $8.5 mil to Spinco. No mention of the terms of loan to PZG. Did I miss something.

  • Reply to

    Spinco value

    by fittycentmo Jan 1, 2015 11:55 AM

    Gold needs to be around $1400 in order for Sleeper to be profitable therefore you can't place a true value on it at todays gold prices. There was talk at the shareholder meeting that Crupi and Friedburg were considering taking advantage of the current depressed condition for miners and acquire a new million oz. property in the U.S. which the owner can't afford to develop.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    its a loan right now but if the deal is approved by shareholders, it becomes 4.9% holding of the SpinCo.
    If the deal doesn't get approved then it will stay as a loan and PZG need to pay the money back to CDE.

    As for the new IPO, they can put any price tag on it as long as it gets backed by the market and not exceed paper value of the Sleeper. Nevertheless, I am sure that management is going to aim for the max they can get but as soon as the stock goes public its going to lose about 40% in the first few days of trading then bounce back if the gold market is solid by then.

    Strong Sell for the new IPO
    Strong Hold for CDE

    Sentiment: Hold

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    Oddly enough, you can see by my post that light came on for me about the same time as it did for you. Thanks.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    It looks as though the SpinCo will have a market value of 30 million. If 4.9% of the new shares have a value of $1,470,000 then 100% would have a value of $30,002,700.

  • If $1,470,000 equals 4.9% of Spinco then 100% equals $30 mil Did CDE get a deal on Spinco shares or the rest of us get the short end of the stick? Someone besides the morons chime in here.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    From the SEC filing:
    The Merger Agreement provides that, prior to the Spin-Off, (1) Coeur will make a loan to Paramount in the principal amount of $8,530,000 and Paramount will contribute all of the proceeds of such loan to SpinCo as an equity contribution, and (2) SpinCo will issue to Coeur, in exchange for a cash payment by Coeur in the amount of $1,470,000, newly issued shares of SpinCo common stock amounting to 4.9% of the outstanding SpinCo common stock after issuance. Paramount and SpinCo will then enter into a separation agreement, and Paramount will effect the Spin-Off by paying a dividend to Paramount's stockholders on a pro rata basis all of the shares of SpinCo common stock then held by Paramount. After effectuating the Spin-Off, Paramount's stockholders will own approximately 95.1% of SpinCo, which will be a standalone, publicly traded company, and Coeur will own the remaining 4.9%.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    On December 16, 2014, Paramount Gold and Silver Corp. (“Paramount”), Paramount Nevada Gold Corp., a wholly-owned subsidiary of Paramount (“SpinCo”), Coeur Mining, Inc. (“Coeur”) and Hollywood Merger Sub, Inc. (“Merger Sub”), a wholly-owned subsidiary of Coeur, entered into an Agreement and Plan of Merger (the “Merger Agreement”), providing for the acquisition of Paramount by Coeur and, prior to such acquisition, the spin-off of Paramount’s mining assets in Nevada to Paramount’s stockholders. Specifically, (1) Merger Sub will merge with and into Paramount, with Paramount surviving as a wholly-owned subsidiary of Coeur (the “Merger”), and (2) immediately prior to the Merger, Paramount will dividend to its stockholders all of the shares that it then holds in SpinCo (the “Spin-Off”). At the time of the Spin-Off, SpinCo will hold Paramount’s mining assets in Nevada.

    The Merger Agreement provides that, prior to the Spin-Off, (1) Coeur will make a loan to Paramount in the principal amount of $8,530,000 and Paramount will contribute all of the proceeds of such loan to SpinCo as an equity contribution, and (2) SpinCo will issue to Coeur, in exchange for a cash payment by Coeur in the amount of $1,470,000, newly issued shares of SpinCo common stock amounting to 4.9% of the outstanding SpinCo common stock after issuance. Paramount and SpinCo will then enter into a separation agreement, and Paramount will effect the Spin-Off by paying a dividend to Paramount’s stockholders on a pro rata basis all of the shares of SpinCo common stock then held by Paramount. After effectuating the Spin-Off, Paramount’s stockholders will own approximately 95.1% of SpinCo, which will be a standalone, publicly traded company, and Coeur will own the remaining 4.9%.

    Immediately following the completion of the Spin-Off, the parties will consummate the Merger, pursuant to which each issued and outstanding share of Paramount’s common stock will be converted into the right to receive 0.2016 shares of common stock of Coeur. After giving effect to the Merger, it is projected that Paramount’s stockholders will also own approximately 24% of Coeur’s common stock, while existing stockholders of Coeur will continue to own the remaining 76%. No fractional shares of Coeur’s common stock will be issued in the Merger, and Paramount’s stockholders will receive cash in lieu of any such fractional shares.

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    contributed is word used for 10 mill,so i don't see that as a loan. no where have i seen the word loan or terms of loan--

  • Reply to

    Pure Prediction 2015

    by atlas_adam2015 Dec 29, 2014 5:10 PM

    like your optimistic outlook. Don't see how SpinCo could come out at 1.25 short of issuing 1:10 spinco for pzg. Correct me if I'm wrong, but the agreement states the 10 mil from CDE is a loan starting the new company with 10 mil of debt. Sleeper isn't nearly a valuable property as San Miguel. IPO at 1.25 by end of day will be much less and falling. I have a lot of pzg stock and prefer you be right. Just have a hard time buying it. GLTA.

    Sentiment: Hold

  • Reply to

    PZG Shares

    by jack_breeden Dec 29, 2014 11:30 AM

    I think we need to find out how many shares are being issued and the conversion rate. My guess right now is that you might receive .25 for each share you own. Just a guess. If you own 10,000 shares, you might have an investment worth $2,500 to add to your CDE investment. If it comes public at $1, then maybe you'll get 2,500 shares or 1 for every 4 you owned before. This is all for spinco,and a complete guess. The fun part is that we are at the beginning.

  • Reply to

    PZG Shares

    by jack_breeden Dec 29, 2014 11:30 AM

    I went back and checked the news release and found that the exchange rate was determined Dec. 16 but I'm not sure if that is the cutoff date or not. I suppose we will find out in due time. Thanks for the response.

  • New IPO for Paramount Nevada Gold Corp Will be around $220 Million total market cap ( around $1.25/Share after CDE's 5%)

    As a long PZG Investor, I think 0.2016% of CDE shares is pretty good deal, now at least we are part of a producing company with the opportunity to grow because CDE is undervalued by a lot.

    By summer 2015 CDE will recover to $15 a share or even higher if silver bounce back up with inflation.

    If you do the math 15x0.2016 = $3.024 + $1.25 = $4.49 for each share you have today.

    I think patience will pay off in 2015!

    Sentiment: Hold

  • Reply to

    PZG Shares

    by jack_breeden Dec 29, 2014 11:30 AM

    I haven't read of any cut-off date, yet. The only date i've seen is when they anticipate to complete this buyout/merger which is 2nd quarter of 2015. If a cut-off date is announced and you bought PZG shares AFTER this date then your shares would convert to new shares in the Spin-off company, ONLY...not CDE.

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