Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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CF I thought it was positive for us.
However, that link you posted regarding the La Arena II project, the grades are tiny and they have 5.5m oz M&I with $600 AISC?! I'm no expert but they must have spent a fortune to drill up and prove that amount of gold at those grades! And $1.36 billion in up front capital?! Just seems crazy given inflation is only going to increase. Perhaps this is mainly a copper project.
Anyways, all this M&A activity is only good news for us. I think Jim is playing hard ball big time, he wants top dollar. We just have to wait and see if he can get it, but as the gold price remains at these levels and more deals are getting done, it's looking more and more likely!
The question playing on my mind is, How long did it take for them to sow up the deal from putting it up for sale?
I think £1 plus territory is possible but would need a bidding war.
18 months into the sales process...but then again maybe a good thing given the price of gold has surged in that timeframe.
For a start Calibre is 4x from point when Sleepy Joe mentioned some lame sanction on a Ortega associate and Nic caught a cold that day. Mako mining is 3x. Condor is a laggard at just over 2x. harder to not find any miner producing that has not doubled in time period.
Appreciate your thoughts Nero on this deal? Good? Bad?
The operating mine is set to produce approx 83-95,000 Oz gold this year with AISC around $1625.
They are also buying the La Arena II project, this is probably the main reason. NPV over $800m using gold at $1300. See the link.
https://www.newswire.ca/news-releases/tahoe-announces-results-of-la-arena-ii-preliminary-economic-assessment-674641073.html
Https://resourceworld.com/pan-american-sells-peru-gold-mine-for-us245-million-cash-upfront/
"Pan American Silver Corp. [PAAS-TSX, NASDAQ] said it has agreed to sell its 100% interest in La Arena SA, which owns the La Arena gold mine as well as the La Arena 11 project in Peru to Jinteng (Singapore) Mining Pte. Ltd., a subsidiary of Zijin Mining Group Co. Ltd. Pan American is selling the asset for US$245 million cash up front and a US$50 million contingent payment.
The La Arena property is located in the La Libertad province of Peru and is comprised of the La Arena gold mine and the La Arena 11 project. Since acquiring the mine from Tahoe Resources Inc. in 2019, Pan American said it has added 535,521 ounces of gold through exploration, and extended the mine life from 2021 to 2026, with the potential for a further expansion."
Err...!!!
That would feel like a lottery win Condorpilot, however I’m not holding my breath! GLA.
Any advance on £1.30 anyone . Come on slippery u know you want to;).
Simms, can you point me to the miners that you refer to that have doubled?
DDD
I normaly appreciated your comments very much
But your prediction of 55/65 is nonsense atm
We are in the beginning of a gold and silver market
I stay with my prediction of 130p
Gl all of you
🤣
Moneyweek barely hit the shelves until friday and most will read over weekend so we should see a good rise on Tuesday, if we do not get an announcement of the sale. Need to bear in mind the 45-65p range was really when gold was $1800-$2000 an ounce and in worse times. Since then most miners have doubled in value, generating considerably more net cashflow that could be used for making purchases and lenders are far more willing to lend to miners again. While i think the deal is done and we are now in the final stages if it was paper then the value could be more. Whatever the price it will be grossly undervalued but for those investing today under 40p will still be a nice return for probably a very short time period. gla
No one has a clue on price, imo the Chinese will pay top dollar to the governor 72+
Hoping we have an outcome before the next round of estimates is needed 😂
DDD, are you on holiday mode again? Market closed tomorrow as it's a bank holiday. I agree that the SP likely rose due to the article rather than anything else.
I should say that I would expect paper to be the larger proportion of any offer around the 55p mark. In other words, the more cash the lower the price outcome. Perhaps 45p is a more realistic outcome if it's all cash. If we get some sort of part up front / part delayed performance based element, that might act in the same way as paper i.e. up the valuation outcome.
I'm as confident as I can be that the outcome will not be less than 40p, and (now) not at all confident that it will be above 55p. I'm also thinking that JM is waiting for PoG to resume it's run so that he can negotiate a bit more out of the deal. If that is the case then an RNS may be as far away as it was months ago.
It seems reasonable to assume that the buying on Friday afternoon might have been prompted by the Moneyweek article. There may be a bit more on Monday as the people who didn't get the chance to read it on Friday take a punt. We'll see.
Sorry ddd, not being bah humbug but it is all irrelevant, the only thing being appropriate for me is having a RNS explaining what the f**k is going on.
Recommend as appropriate.
We know that Dominic Frisby has a 45p target.
Recommend as appropriate.
Recommend as appropriate.
Recommend as appropriate.
I'd like to think we can reach this band, down from my 60 -65p expectation of early 2023.
Recommend as appropriate.
Recommend as appropriate.
I'm curious to see whether expectations have changed since we last did this, especially given that the SP is now edging towards the lower end of expectations.
You know what to do - recommend against the band.
Https://youtu.be/gbJkDNE5idY?si=XB0fGBxCfZ0mVto7
Another good video to watch about the mining space and M&A. Interest building in the mining space. We surely can't be far away. Hold onto those golden tickets.
Looks like the major gold miners (Glencore etc) are getting ready for some M & A bidding wars.
Might inject some much needed life into the sector.
Dominic Frisby has been banging the gold drum for a long time. My take is that the price of gold will probably consolidate around 2200 but the miners will start to close the value gap; and silver will catch up this year.