RE: Patience27 Aug 2019 14:48
I’ll label the abuse part of that to the fact that you like playing victim, I’m sorry that you feel like you have been abused - after all you sound like an extremely intelligent individual with high emotional intelligence.
As to “what happened” what’s happening is clearly there is some interest in the assets that is for certain. There will always be interest generated by large proven volumes of recourses such as gold to a high confidence standard such as JORC. The fact is there probably have been offers, but why should the company accept the early bird offers which will be low ball because the buyer will likely try to exploit the fact that ARCM is a junior miner. Once resilience is acted as they have been doing so for the last year or so, interested parties will become far more privy that the financial situation of ARCM is not sensitive to the reliance on the sale of the gold asset. This will affirm to the buyer that a low and undervalued offer will never be accepted and in turn influence higher bids in the future. As the buyers must wait longer and longer to persist with this low ball price they will become increasingly confident their strategy of waiting for ARCM to become desperate and accept a poor offer has failed. At this point (which is not tangibly predictable) ARCM will see a satisfactory offer. Until then enjoy the fact that the company has intelligently and strategically optimised the cost of the drilling program to discover additional assets while balancing additional dilution to the share base.
A more concerning position would be that the company finances where terrible and they sold the gold assets tomorrow. In this circumstance the lowest possible price would be realised for the companies assets leaving the shareholder with a very poor return.
At current strategic trajectory, the gold assets will be sold at a satisfactory price within an undisclosed time period which is a luxury afforded by the careful management of finances. E.g the better ARCM finances the longer they can resist a terrible offer and not be exploited by a buyer essentially waiting for ARCM’s finances to force its hand to sell at a low price. In addition, more assets are pending discovery from and wide range of drilling locations.
What’s not to like?
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