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Paramount Gold Nevada Corp. Message Board

  • bullishcowboy1 bullishcowboy1 Mar 5, 2013 2:02 PM Flag

    I vote $6.5 per share now as a fair buyout for PZG= $955 billion (good for buyer and seller.)

    Now that the PEA is over, I think that we could get a buyout offer any day. The question is about opportunity cost. Does Chris C decide that it's better to take $6.50 now ($955 million when you take 147 million shares x $6.5) or wait another year with cash burn to see if gold is higher. I think gold will be higher, but it might make sense to take the money now and move on to something new. Chris makes more than $22 million on the deal. I arrived at the $955 number by taking the 5.7 billion dollars of assets in the ground (gold and silver) and discounting to 1/5 of the assets. This values the company at $1.14 billion. ($1,500 Gold and $28 silver) Add a dash of negotiating (in the buyer's favor) and you get to $6.50. In the go go days ( a few years ago with both PEA;s done) I think we would have gotten $13. The guestion that management has to think about is (a) whether it wants to wait (b) wait and do some more exploration (c) sell out now. I personally think that $6.50 makes the most sense because miners are out of favor. Since costs are going up quickly and gold is flat, the conservative move would be to sell now. As an investor with 115,000 shares, this would be my vote. I do not think, however, we should take a penny less. I think $6.50 would be fair for everybody. I admit that it is a little disappointing because the timing is not good. Anybody's thoughts on this?

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    • I would be really happy if they sold for anything north of $4. In the recent interview on BBN, Chris C implied they want to wait for a shakeout among competitors. He said they want to move on to a feasibility study. Sounds like they want to wait this out.

      At least I think a big risk of a massive short attack is abating. The shorts could have driven the price below the warrant conversion price and really put the hurt on PZG, The warrants would have expired worthless and the expected cash infusion would not have happened. PZG would have been forced to dilute in this sour market and the bottom would have dropped out of the price. I believe the warrant conversion is about ten days away, so I think we're safe. It could be that they've already begun converting and are behind the sub-$2 price as they dumped the newly minted shares back onto the open market.

    • But Chris C is stupid. Piddly poodle doo

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