Read the response from Jag today
they acknowledge several proposals on the table
We have one for $9.30 cash
Who is offering $12???
Multiple proposals indicates $9.30 will not be the final takeover...clearly it will be higher!
This baby gonna rocket!
CONCORD, NH, Nov. 16, 2011 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE) in response to news articles today regarding an unsolicited offer to buy the Company, acknowledges that it has received proposals over the past few weeks.
Oh someone is interested, plus JAG was basing for a rise on earnings alone as Gold surges and stays firmly above cash costs of $600...at $1700 its a screaming money maker
on its own, long term JAG would make new all time highs, but I afraid it will be purchased much lower, probably around $12.00
Oh well I am happy with anything above $5 where I paid.
Long, strong and hangin on.....
Jag is one of the most undervalued juniosr even at the current price of almost 8. Basically after 2013 when the new mine comes on line at current prices you are annual product to martet cap is 150 when is about the lowest in the sector (MFN is about 600, AUY is about 700). The other metrics to evaluate like cash costs where Jag is relatively high (about 700 vs 450 for MFN and under 100 for AUY). But as gold goes up in price cash cost become less of a factor in evaluation. On a cash flow basis at current market prices Jag should be valued at about 1.6 billion on a takeover or about 10 times cash flow, considering the growth rate of the new mine in 2013 ( a present vslue analysis would yield about that results). That put Jags value in the 15-16 range (maybe a 1-2 dollars lower when you factor in the convertibles). I do not know if we will get there, but 9.3 per share is a stink bid.
The Company confirmed that, in light of the publicized unsolicited offer, the Board of Directors has determined to initiate a strategic process to explore alternatives to maximize shareholder value. At this time, none of these proposals has progressed beyond the exploratory stage. The Board has retained financial and legal advisors to assist in this regard. There is no assurance that the process will culminate in a change of control transaction.