PPP shareholdes congratulations on your purchase of Brigus
I look forward to a long and properous future toguether. Just a note for you, you got a good deal, its not a bad deal, and as time moves by and brigus keeps pumping out very high grade holes from black fox PPP will go back up, the market will see the wisdom of management. PPP will do the same thing they did with St Dimas, expand mill capacity from 2200 TPD higher, and grow production from grey fox and black fox, FASTER THAN THEY ARE SAYING IN THE PR,they are just being conservative. And as a side note PPP is also very cheap and now even cheaper than before and more valuable, it itself is a takeover target.
Hell yes PPP is getting a good deal. They're adding 105-120k ozs of low cost production and a couple million ozs. Black Fox has a lot more gold than the 43-101 indicates, and Grey Fox is becoming substantial in short order. BRD provides an immediate production increase of ~66%, and with only 25% dilution. That's accretive.
Furthermore, PPP is buying BRD at rock bottom prices. BRD at 60-80 cents is a giveaway. As a longtime BRD (and formerly Linear Gold shareholder) I am disappointed in the price, but excited about the future because PPP is on a short list of up and coming future stars - the emerging mid-tier class. These companies give you the growth and upside potential of the juniors, but also the stability of the majors. With GG owning 25% of PPP, I think it's only a matter of time before PPP shareholders become GG shareholders. That would be nice, GG is best of breed of the seniors. I was expecting BRD to rise over $1 level in the coming year anyway from continued Black Fox performance. BRD was trading at 60 cents and less and popped big on last quarter earnings as they continue to produce net income even at lower gold prices and add more ozs to the 43-101. I would be really #$%$ if some #$%$ gold miner had made the bid, but I like PPP. Been a big fan of Joe Conway for many years as a former buyer of IAG at $2-4 before it went to $25. His deals with IAG - Cambior and Orezone - were masterful. He's very smart. Good buy on Brigus. Look at what IAG has done in his absence and look at what he's done at PPP.
I agree GG is the obvious candidate since they already own 1/4th. But it could be another major. GG might use the PPP shares as leverage in negotiations with another major if they did an asset swap. PPP's Mexico/Canada jurisdiction profile fits perfectly with GG. It could be an emerging midtier that trys to take PPP. (b2gold, alamos, eldorado, etc) I think IAG would be smart to buy PPP after the close.
My own person favorite GG since they have a relationship with them-Gold sales in the third quarter were 652,100 ounces on production of 637,100 ounces. If you think that adding 100-125K oz to your pipeline per quarter is chump change for gold corp that is a mistake.It would be a significant enough aquisition. And then we can use the same logic as is being touted now, re-rating, re-rating from being valued as a mid cap gold producer, to a large gold producer the assets in GG's hands would double in value overnight. You just gotta be patient, I had to wait a long time for Brigus to be bought out, Primero's time will come as well if they put a little money into blackfox and fix it up nice and pretty its going to be a much better package deal than it is now. I also think Yamana can be a good buyer. The key is that both PPP and BRD are low cost producers, and that is what you must be now to be an attractive take over target. Just for the record I am staying, not selling shares, just moving over to Primero now.