hey fifty -look at drill reults pershing gold right next door to coeur and rochestor mine,coeur holds 10,million shares,rasmussen stated they were sending him looking for gold,he also has found a high grade like the old dayds ofnrvada right next to their pit under infrastucture-pershing founf 20z per ton material this set of results one of best in nevada in a couple years-
Think I get it. Merger based on % and not specific price - I read that wrong - must have. Now that we broke $1.30 - both in merger are up - thus % remains the same. Still no understanding of value of SpinCo - but you are right I think - go long with CDE. I bailed once on Mirant and SO roared back - lost on that. By number is 100K plus shares however the average price per is $2.34 or close. It's been rough since that fall - missed it completely after darting in and out for years at a nice profit. CDE has a good chance of coming back - unknown of course is will I ever go beyond my average. Bad decision - but all hope is not lost. Looks like to me - the higher both go now - is all good news - with a hope it continues. I would be delighted to come out where I went in - anything else would be great - but I am just trying now to figure out if there will be an exit strategy. Going long with CDE seems to be the best way and only way I see currently to at some point - soon or much later - make it back to original value and beyond. Each time I have bailed - it was a mistake. Not this time I hope. We live with our decisions and I have no problem with that - I just see a bit of light way down at the end of the tunnel. Thoughts as of this date?
The following is my understanding of merger values for Paramount shareholders.
Paramount News Release - December 17, 2014
$10,000,000 for 5% (round-off from 4.9%) of SpinCo
1% = $2,000,000
100% = $200,000,000
5% = $10,000,000 – Coeur Mining
95% = $190,000,000 – Paramount Mining
Paramount Fully Diluted Shares: 167,295,469
$190,000,000 / 167,295,469 = $1.14* per share SpinCo valuation for Paramount shareholders
Pursuant to the Merger Agreement, Coeur will acquire each share of outstanding Paramount common stock from Paramount’s stockholders in exchange for 0.2016 of a share of Coeur common stock (the "Exchange Ratio"). In addition, Paramount stockholders will receive their pro rata* share of the outstanding shares of an existing subsidiary or a newly incorporated subsidiary ("SpinCo") of Paramount.
Coeur current share price = $6.36
Paramount current share price value - $6.36 x 0.2016 = $1.28
Paramount shareholder `actual value’ - $1.14 + $1.28 = $2.42 per share
*My interpretation of pro rata share, (pro rata means `in proportion’).
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fsmi and frieberg made this deal, the spinoff company funded with 10mill from coeur for sleeper and spring valley are both in nevada and sleeper is heap leach with a tailings component ,just like coeurs rochestor mine-the corporate strategy is to build value,partner ,jv or sell -frieberg and fsmi have controlling interest in seabridge and now have shares in coeur that they feel will outperform pzg as explorer-i believe the hidden value is in paramount spinoff -sleeper has in M+I over 3 million oz gold but it needs more drilling and higher metals and who better than coeur in nevada for a large bulk tonnage heap leach as a partner --just look how they brought rochestor mine back to 20yr mine life--
PZG and CDE are going up up up. Why would you sell now? Europe is going to shoot the bailout cannon in the next week and gold will jump again, and you still have those poor souls in oil rotating to gold and silver for safety. But #$%$ do I know.
What did P.T. Barnum once famously say about a sucker being born every minute? Go ahead and let them sell their shares at low prices - more available for the true investors.
Sentiment: Strong Buy
Its not locked below a dollar its locked at .2016 x the price of CDE. As CDE goes up the the value of the .2016 goes up and the price of PZG goes up. I don't recommend trying to game the math... the computer algorithms will keep it in lock step to the CDE price.
I don't know what I am going to do with spinco yet, but I will hold CDE into the next cycle. I also own AUQ which I am very happy with. Best of luck to all.
I do not understand how PZG bounces to $1.25 when a conversion per share has been established but the conversation date has not. A simple question I know - however at the end of the day - is our PZG share not in concrete at the agreed purchase price below $1? For PZG longs long frozen at a little past $2. per - would our only hope for fresh air and a chance be for the other company stock come down meaning the locked price on PZG goes a little more distance down the road? I am having a tough time understanding the variables here - which could result in a giant hammer falling on those positioned like me - or a possible way out before we become old men. I could sell 100K plus shares and put the money in other areas that might make it back faster however something tells me not to do so - however I am unable to figure out why exactly. Part is the new company - where there is no value known, the 2nd is if they locked us below $1 - why is it moving up - and what if anything could it possibly matter? Your thoughts appreciated.
First Spinco is generic name for the agreement. Second, PZG pps will track CDE at .2016 the daily value of CDE pps or very close to it. Third, it is pure speculation at this point on the value of the "Spinco" stocks and how many shares will be issued. Don't be surprised to see "reverse split of PZG stock" on issue of Spinco.to get the Spinco pps up. Remember, PZG made most of their property purchases with small amount of cash and balance with stock. You will probably see that again, therefore, the reason for the "reverse split". JMHO
Please share your math. I hold a ton of PZG and have not been able to glean any clarity on where it will need to go once purchased by CDE. Fog is spin off stock value. I just do not get it - but would like to wrap my mind around it. No clue as to why PZG is jumping to near $1.25 when in weeks it goes away at .90 or close. How do you factor in everything including the new co - in order to come up with $12.50? Thanks -
I can't wrap my mind around how PZG continues up - as high as $1.24 and yet in weeks this deal is scheduled to close. In other situations I have always been able to calculate where I would be (if) something happened but this has me confounded on what we will receive after I think we are locked in at low .90 per share so that purchases x number of new shares in C. However are we also to receive (SpinCo) what a name... stock? If so - is it impossible to determine if this is locked down at Z - or is it still fluid. Amazed that PZG has gone up for so long. Don't get it - as the ultimate highest value of this stock is the lock in price correct? Would people be playing the stock - riding the rise and fall knowing that in Feb the value is what they said it would be - meaning much lower than it is now. This one has me. Even with 100K shares I will not bail. I have to think that when yellow finishes this cycle - it will go up - and miners will follow and that the new company will stand a better chance of making up some of the difference in my loss.
we need to see the details but who calls a spinoff spinco? they are giving the new company 10 million in start up money. I don't know what all the fuss is with these lawyers its been good for the stock.