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My understanding is that proven and probable important for financing the build but my uneducated thought it that it is less important for a company who already have cash. Obviously the more the better but you could argue less important for a company that already has cash or have other means of borrowing.
I'm not sure they are front runners.
Sakura, there could be valid reasons this is taking longer. More due diligence may be required by a company that is looking into a new jurisdiction. For the example of osino, the first company already had a producing mine in the area. We don't know the details of the new company that has outbid them so we don't know if they already have other projects in the same country. We know our BOD are holding out for a decent offer. We just have to wait and have faith that the board are doing their up most to get market value.
Here is a really good example of M&A activity/trumping other bids. Osino resource released a DFS June 2023. All figures in USD. Gold price $1750, 13-year mine life average 162,000oz a year, average grade 1.04g/t, AISC $1,011, initial capex $365m and after-tax NPV 5% $480m with after-tax IRR at 28%. 2.2 years payback and 2.15m oz proven and probable mineral reserve, total measured and indicated 2.94m oz.
In December 2023, Dundee Precious Metals offered $212m, so 44% value to the NPV from the DFS, mix of shares and cash. The share price jumped up roughly 50% on this news to C$1.43.
Then yesterday it announced they received a superior full cash offer from a “foreign-based mining company” for $272m, valued at C$1.90 per share. The share price went up another 25% and is currently sat just below the offer price at C$1.74, which is 56% value of the NPV.
A reminder, if you take our PEA numbers for 150,000oz a year, at $1,700 gold, our after-tax NPV 5% is $418m with 54% IRR. Similar calculations on the offer of osino gives a value of $234m or ÂŁ185m with 230m shares in issue (includes stock options/warrants) equates to 80p.
This goes to show that the share price can jump up with competing bids.
https://osinoresources.com/news/
Could be reading into too much, but mark has presented here for the past few years and he isn't on the program this year. Maybe we could have a deal signed and sealed before then?
Polo, I would say calibre are less likely to buy us now.
Connect, me too.
Momentum building connect! Are we close to the finish line?
It's far too complicated of a read unless you are a geologist. It was published at the beginning of Jan and MC had some inbound queries as a result of it being published.
Simms, don't forget the debt and further cost for the valentine project for calibre. Calibre have $84m USD end of 2023. $141m USD has already been spent on the valentine project so calibre have taken on that debt. There is another $236m USD to spend over the next 18 months. There was a financing deal with sprott but I think calibre want to pay some of this with their cash.
Https://ceo.ca/@akibaleisman dated 15th November.
Mako are not interested. Their CEO said it on another forum a few months back.
I'm still torn as to whether calibre will buy us out. On one hand it makes total sense but then I can't see them building a processing plant onsite.
It would be a massive U-turn given the amount of work that has been done to win over the local community and the investment in building a processing plant.
One possibility is that if calibre also think there could be 5m + Oz and they are finding new resources, then there could come a time when they max out capacity at la libertad and they need more processing capacity, then a 3rd processing plant would be worthwhile. Or maybe they could just expand their current plants.
El, I just saw a post over on advfn stating his name and found his article by searching his name on twitter.
Nero, I'm not a subscriber to his stuff so can't post the full article.
Https://www.theflyingfrisby.com/p/decoding-a-cryptic-no-comment-is
Most likely the reason of some extra buys today. Just like when undervalued shares pumped us.
Some say can you please give it a rest.
Interesting that marathon gold, who were much further ahead, have a bigger resource and were in a top mining jurisdiction only had 5 signed confidentiality agreements in place. This was only in a 3 month window though. If you look at it that way, you could say we've done well to drum up 8 NDAs and have 5 non binding offers, even though it has taken a lot longer. We've got to be close to the finish line!
Surrey, is this direct from MC?
Simms, that amount of buying was most likely due to undervalued shares pumping us. It fits with the timeframe of when he circulated information to his followers.
As far as I know, the gold is still there and in the space of a year, the price of it has gone up $150 an ounce.