I agree. But the premium is too large. CDE holders will accept to get a nice dividend and better mgmt and balance sheet. The combined company would be very compelling in terms of future earnings power with 50-60M ozs of Ag eq production. Maybe more than that since CDE is producing a lot of gold too. I like it. But I'd really like it if theyd go hostile on aurcana which is down 90% and has a sweet little mine in Peru with well over 100M ozs silver, and I'm sure the shafter mine in Texas will eventually be worth something at higher silver prices. Aun is trading for chump change. Paas could buy them, add 3-4M oz low cost production immediately and not even notice with no dilution. Adding 20% value with a small non dilutive transaction is preferable to a merger of equals scenario IMO, but with silver only $21 silver investors will make out like bandits either way.
Its just too cheap! All this cash and barely trading with a positive EV lol. Gentlemen, this is a 10M global resource with the capability of producing 400k ozs and is fully funded. And it's economic to operate even at the lower gold prices. I can understand an explorer trading for near cash if they don't have any means to reach production without a major capital raise, but not a producing mine, and a large one at that! I sold out of this back when it was Keegan at much higher prices, but I have to say I'm pretty damn confident a longer term position here should stroke me nicely.
The next $1000 move in gold from here is $2325 not $325!! (bwahaha)
Sentiment: Strong Buy
Give the bum an #$%$ whooping on the way out. Take all his money and issue a special dividend to shareholders LOL.
Yes. Stock will pop 25-35% in one week after change of CEO. It does seem like quite a few of the miners have been so poorly guided it almost looks deliberate. IAG sold its JV with Gold Fields for $600M and bought a late stage exploration property and floated a huge note offering. These guys could have bought 300-400k ozs of additional production EASY with the money and no dilution. Instead this. Off with his head.
Screw that warmcamp. IAG CEO is an idiot. He bought a low grade moose pasture for over half a billion dollars, took on $600M in debt, and they have #$%$ to show for it.
You're full of it.
It's nice to see 20% pay cuts across the board for mgmt and bod, but maybe a new person would be better. Lenny should have been smart enough to know it wasn't worth the risk of bringing Shafter online with $19 silver. At least they should've halted it a couple months ago when it was clear they were going to smash silver back down for a retest.
Should like the idea even more now. Look at Aurcana down another 50%! They are trading like they are headed for bankruptcy. They are putting the #$%$ Shafter mine they were attempting to revive online on care and maintenence. It's not worth mining until silver is $30+. Too many input costs. HOWEVER, the La Negra mine in Peru is a nice grade with low costs. Probably not going to be AG that buys it, because it's not in Mexico, but maybe Fortuna or PAAS or SSRI or somebody comes along. La Negra throws off cash at even $19 silver. Not a lot, but it doesn't lose money. Aurcana just took on a $50M credit facility, and after they write down Shafter, I don't think it's lights out for Aurcana. Mgmt and BOD all taking 20% pay cuts, so I don't think they're grifters. Who knows? I like AG that's for sure. Let her drop and capitulate. Like a singer said, "I'll be thereeeeee." AG will eventually be a solid dividend payer when people understand paper silver is not silver, and the bullion banks have less gold than Mr. T.
We don't do Dem/Rep politics here on the gold boards, we are smart enough to know both parties suck.
This offer is sealed and done. GG owns 1/4th. They will probably want to buy PPP eventually. PPP is a great company among its peers. There is a small chance of another bid. IAG, EGO, BTG, Alamos, AEM, AUY being the obvious suitors imo. I think Brigus is too small for the NEM ABX KGCs of the world. But BRD is still cheap enough smaller midtiers will take a look. Even #$%$ Aurico could bid LOL.
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.
What? For the last dollar of downside coming from $20? LOL IAG will remain a going concern for a long time, and the era of gold won't be over until it's the last one standing. The Rothschilds are probably buying gold equities for a dime on the dollar if I had to guess. I like silver better myself, have for a long time. And will continue while it's only 1/63rd the price of gold!
Silver goes to $40-50 again and Twitter fades to the teens. Or maybe just buy the silver and forget about Tweeter.
The Fed creates nearly 5 BILLION $20 dollar bills a month with QE and gives it to the banks. Only 200-300M ounces of silver are left over after industrial demand for investors to buy WORLDWIDE ANNUALLY! People who think a $20 bill backed by NOTHING except more debt to pay for old debt is better than an ounce of silver are so dumb they should be Kervorkian-ed. Oh well, when these people die of diseases colloidal silver could cure and they are rendered ill and damaged from "modern medicine" they will wish they weren't so ignorant.
In another 10 years people will look at people who took damaging antibiotics and chemotherapy with the same astonishment that we look upon blood letting and drilling holes in skulls. Barbaric poisoning. Cannabis cures cancer, and colloidal silver will knock out even the most resistant strains of bugs.
It should be obvious how to beat these criminals at their own game. There is only 200-300M ozs of silver left over every year after all mining and scrap/recycling for investors to buy. That's 4 to 6 billion dollars worth of USD. LOL What is that? 1 or 2 days of QE? That's the market cap of a social networking IPO LOL. Buy some friggin silver and smile people. It costs WAAAY more to find, develop, permit, construct, and operate a mine than $20/oz so you can't go wrong if you have a time frame longer than a FRUIT FLY. When inflation finally does gain traction, people will be chittting in their pants like smarter people were 5 or 10 years ago. Stage your buys. The govt is giving everyone a subsidy to load up, and with a penchant for dumping 10000 contracts at illiquid times the criminals might keep striking.
Wrong, fiat money holders are the bagholders, and that includes the dollar and people dumb enough to loan money to the Treasury for almost no interest!