Final March numbers are in and they finished about 70K-80K coins below last year and maybe 10K-15K cards above last year. Flat revenue, maybe. Hard to gauge if some big, high value collections came in (Pogue)
Declining volumes and flat revenue do not excite me. Backlogs are "low" as well.
SLW owns about 15% purchased at much higher prices. Do they want to sell out at the bottom? Doubt it. So HL would buy it at $20M but not $25M or $30M?
HL has only bought 2% of the outstanding. The break up fee is only $850K. That leaves the door open for a superior offer. The equipment in the Troy Mine is worth over $20M. RVM has $7M cash and $2M in metal to be sld. RVM will vote no unless HL kicks in some more money.
I've actually received 4 figures in a couple of these. So many people don't bother that whatever is left after lawyers fees is not a bad chunk of change
10K is out tomorrow. Maybe they used up their cash giving severance when they shut down Troy. Still, they had mining equipment like the crusher, trucks, conveyor, etc, that could be sold.
MGN was up because the Forest Service put their SEIS out for 45 day review yesterday.
RVM will sue and I am not sure if they will vote for this deal to go through. RVM also had $2M in metals for sale and over $20M worth of equipment (trucks, crusher, conveyor, water treatment plant, etc. at Troy). How they came up with $20M after all that is beyond laughable. The break up fee is only $850K. I would not be shocked to see another superior offer.
apparently they own about 2% of RVM shares already so RVM shares converted into HL shares will create 6.2526M shares assuming HL buys no more RVM shares on the open market. With RVM trading 10% below the buyout price, it would make sense for HL to keep buying RVM
I did a contained metals analysis of MGN vs RVM. MGN has 70% of the silver equivalent oz's of RVM. So if RVM is worth $20M, MGN is worth $14M. MGN current market cap is $14M
Rock Creek has 2.3B lbs copper, 300M oz silver
Montanore has 1.7B lbs copper, 230M oz silver
about 70% of the contained metals. 70% X $20M = $14M. Current market cap is $14.5M
I didn't sell because there is a big difference between 48c and 52.3c. If I was going to sell, I guess I would go with SLW. Should there be a spike in metals between now and closing and RVM is over 55c, I would sell.
To avoid a lawsuit, RVM/HL may also agree to raise the price by 5% or 10% as well. I have been contacted by 2 different firms already. Is it worth $1M to HL to avoid a lawsuit?