There's only one reason that companies enter into NDA's and allow another company to undertake due diligence and that is if the company is looking to jv or make an offer for the company. The depletion of B2's mines in Nic dovetails nicely with the coming on stream of La India, as MC said, 'a game changing year'.
Interesting to see the two 23kg test samples for processing were selected 'independently'' by B2Gold employees, as I've stated previously, very strange if just for processing ore for Condor. Also, IFC still hold 3.4m shares and are still on board, hopefully with the money to build the mine.
MC's comments regarding purchasing B2's plant indicates he is confident of raising the finances to purchase, as MC has said in previous presentations, ' this will be a game changing year for Condor', I hope he didn't mean the trashing of the share price to-date but the coming together of everything he talked about yesterday. Here's hoping we don't get another RNS today declaring yesterday's good news was an 'April Fool' joke, onwards and upwards hopefully.
Couple of things that intrigued me regarding MC's email, firstly why would B2G do a due diligence on the samples, surely B2G will enter into an agreement to take a specific amount of ore for a specific fee, it would be up to Condor to decide the grade it supplied. Secondly, correct me if I'm wrong but hasn't MC stated that the ore would be trucked from the two new feeder pits and not a feeder pit along La India. Thirdly, if it is to be a '% sharing of profit' agreement with B2G then why would Condor have to stipulate the condition that the results of the tests are shared with Condor, surely this would have been a given, lastly, I would like to know if the samples were taken from the 'feeder pit' site or from along the length of the La India seam to reaffirm the average grade over the whole of La India. B2G's due diligence seems a strange request for someone just interested in processing some ore for Condor.
Trucking ore will be a short term, 2 yrs max as stated. MC has committed to jobs and training for locals at La India and that will happen irrespective of trained personnel elsewhere, it was a condition of the permits. Plant used in the production of gold is very much transferrable from site to site and as such if he can get a deal on second hand plant I'm sure he will seize the opportunity but he will bring it back to La India and rightly so.
It will be interesting to see if institutions are crystallising losses for the end of the tax year, if so this selling should stop after the 4th April, if it does then watch out for the buys back in after 30 days, it could recover very quickly if this is the case, just an observation.
Looks like anything under £1/share sale price and MC gets 'naff all' as far as a bonus is concerned, better above £1.50 which earns him 2% up to a max of £2m. Looks like the board are not planning to sell the company on the cheap. Also, looking a the last paragraph of the latest RNS, MC mentions that the inclusion of the two new higher grade feeder pits would help 'repay the debt quicker' which implies that the intention is to look more to debt rather than dilution, possibly a mix of the two, but I'm sure that majority debt with quick repayment is the plan.
I would suspect that if the 2 new high grade feeder pits are to contribute to the toll mining MC will be waiting for the permits to be granted before making any announcement, doesn't want to put the cart before the horse, shouldn't be too long in my opinion.
Babbler2, thanks for the link, it will be interesting to see if the continued buying here pusher up the Ask price which I would have doubted if there were 'shed loads' of shares being off loaded, we wait and see, but well researched anyway.
Babbler, I repeat my question, what evidence is there that they are off-loading, I read reports of issues with the company but not of a strategy for going forward, I've checked other companies which they are invested in and there is only everyday normal movements in their share prices.
Seingred, the projected profit is, as you suggest, just a finger in the air figure but I took into account that our projected aisc costs are declared at around $700 but this includes the crushing and milling costs and creation of the 'rough' ingots that B2Gold will now do so whilst their costs increase ours would drop. I'm not convinced that MC would do a 50/50 split on profit, after all, it's our gold ore and there comes a point where it's not worth following this strategy if the profit isn't there, we may as well just forward sell produced gold. As, I said, it's just a 'finger in the air' calculation to demonstrate the size of project the generate so cash in the short term, and meant to stimulate the conversation which of course it has done, thanks for your comments.
No big afternoon sales again today, looking good. Cambells, with regards to selling the cream, MC needs to decide which is the lesser of two evils, selling the cream or diluting the share base, the lesser the grade ore the more needs to be excavated and transported resulting in less profit for more effort, I'm sure MC and his advisors will have run the numbers and will come to the right decision, still seems better than diluting the share base at these levels in my opinion.