Sydney, Mar 28, 2017 AEST (ABN Newswire) - Carbine Resources Ltd (ASX:CRB) (OTCMKTS:CRNRF) has announced they have re-negotiated terms for the remaining 25% interest in the Mount Morgan gold copper tailings re-treatment project in Queensland. As a direct result, Carbine has an exclusive option to acquire Raging Bull Mining (RBM). On exercise of the option, subject to any necessary approvals, the shareholders of RBM will receive:

- 25 million Carbine shares;

- A$2.3 million in cash or shares at the election of Carbine (number of shares based on the 15 day VWAP at the time of option election); and

- 1.0% royalty.

Analyst Comment: This transaction is a positive outcome for Carbine, as the revised terms are an improvement on the original structure (reduced future shares on issue). More importantly this should allow for project financing negotiations to intensify over the coming months, as it is unlikely favourable terms would have been offered without a consolidation of the projects ownership.

As previously highlighted despite a relatively modest production profile compared to other Australian gold assets, Mt Morgan will have exceptional strong cash flows, driven by margins of more than $1000 per ounce. This is expected to drive outstanding financial returns (EBITDA during the first 3 years of production of around $50m pa - TSI forecast), that are more in line with a gold producer with forecasted production more than two to three times that of Carbine.

The information in this release should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Valuation: We have increased our valuation for Carbine from $0.41/share to $0.44 / share (SP $0.11 / share). The key driver for the change in our valuation was a reduction in the number of future shares on issue (current 369m vs. previous 417m - TSI assumption).

To view the video, please visit:

About The Sophisticated Investor

The Sophisticated Investor

The Sophisticated Investor is a new equity investment tool which seeks to assist investors in becoming more informed in their investment decision making. We show and tell investors about a company in a series of short, informative videos. We possess specialist equity analyst skills and are complemented by video professionals. We conduct site visits and interview management, in a way most investors simply aren’t able to access. We promote long term value creation for investors by employing detailed financial analysis and intrinsic value calculations.

Customer notice
Adam Kiley trading as The Sophisticated Investor ('TSI'), (AR No. 458224), is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359). The information contained in this communication is intended as general advice only. Your personal objectives, financial situation and needs have not been taken into consideration. Accordingly, you should consider how appropriate the advice is (or is not) to your objectives, financial situation and needs before acting on the advice. The information in this communication should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Conflict of interest
TSI does and seeks to do business with companies featured in its articles and videos. As a result, investors should be aware that TSI may have a conflict of interest that could affect the objectivity of some articles or videos. Investors should consider TSI articles and videos as only a single factor in making any investment decision. The publishers also wish to disclose that they may hold stock in some companies featured in their articles and videos, and that any decision you make to purchase the stock of a company TSI profiles should be made only after you have initiated your own enquiries as to the validity of any information contained in those articles and videos.

Publisher's note
TSI will only initiate coverage of a company that passes our internal investment checklist. Once a company has passed this checklist, we will initiate coverage of that company and follow up with ongoing updates and commentary on its activities. Articles and videos produced and published by TSI are NOT Research Reports in terms of ASIC Regulatory Guide 79.




Adam Kiley
TSI Capital Pty Ltd
E: adam.kiley@tsicapital.com.au

Related Companies

The Sophisticated Investor
Carbine Resources Limited      

ABN Newswire This Page Viewed:  (Last 7 Days: 13) (Last 30 Days: 62) (Since Published: 7848)