Central Rand Gold - Re: CRND Stream Log - Knicl46. Share price and share...

Knicl46. Share price and share value. Share price is what someone is willing to pay for the share. Share value ids the balance sheet total divided by the shares in issue. Latest NAV Dec 2014 was minus 14.4p per share. Current share price is plus 12p. Why is the share trading at a 26.4p PREMIUM to its value? Because there is a reasonable expectation that the company can sell the main asset for £50m, it is already priced in. The punt is that every £10m above £50 sale price adds another 5p to the share value. The unknown is how great any additional losses will be for the eight months since the last accounts and what financial provisions will have to be made in executing the sale(e.g. the PONO loan etc). My view is the maximum upside is another 20p, but there will be significant deductions for currrent company expenditure, PONO, environmemtal obligatios etc. Good Luck. .