I used to think that when JAG was $4-5, I'm sure AUY would fork over $3-4.
JAG would only cost a few hundred million. AUY could retire the debt, and put some real operators in charge, get the 3 mines and Gurupi running and get 170-200k within a year. The reasons why AUY won't are JAG cash costs are too high. Only if they think they can get costs down to $700-800 like the press release said. And they have to retire the debt.
Nah, JAG will probably be bought out by some kind of Asian outfit or consortium of resource investors to take private.
The appeal of JAG being that if and when gold DOES go to $2500-3000 or whatever being a 170k-200k oz producer will create boatloads of earnings even if cash costs remain problematic.
What has happened with JAG is NOT as bad as: 1) political regime change 2) mine shutdown for safety reasons 3) broken mill 4) tax/royalty increases 5) horrible natural disaster etc...
The company is taking a pause to gather itself and make the mines operate better. They are still cash flow positive, and still producing significant amounts of gold. Move along. Cover your short.