NorEscO29 Jun 2021 08:20
NorEscO, looking at your posting history you seem like a frustrated but genuine holder. Given the way this is playing out I can understand why. I've been here several times before. I made a very costly decision in very similar situation to this. Fortunately I learned from this and haven't made the same mistake again.
Personally, I initially invested in Arc as they had substantial acerage close to an operating Teir 1 copper mine, the geology pointed towards further discoveries in the area and Anglo American had previously identified sevetal promising targets within Arcs acerage.
I find it helpful to reflect on why I invested in the first place and consider what has changed since. There's so much conjecture but when I look at the facts I see no reason to change my initial investment decison.
Fact 1. Arcs assets were previously owned by Anglo. Anglo know the underlying geology and the potential of the assets.
Fact 2. Anglos previous target identification in the Domes region has been proven robust through the development of Senitel by First Quantum and Arcs drilling results so far. Note, the gelogist who successfully advanced Anglos initial work for First Quantum, proving up a 5Mt resource, was Dave Woods.
Fact 3. In July 2019 Anglo recruited Dave Wood as exploration manager with the aim of identifying potential Tier 1 copper assets. His first assignment was Zambia
Fact 4. 14th July 2020 Arc announced they had entered an exclusivity agreement with Anglo to complete a technical review of Arcs assets.
Fact 5. On 7th December 2020 Arc announced that Anglo had completed its technical review and were progressing to complete Due Dilignence on Zamsort and Zaco. Note, the technical review of Arcs assets was led by the afore mentioned Dave Wood.
Fact 6. 13th of January 2021 Arc announced that Anglo had completed its due dilligence and were proceeding to conduct negotiations in respect of a commercial transaction prior to the end of the exclusivity agreement.
Fact 7. Arc are the only exploration stage copper company Anglo are currently in commercial negotiations with.
Considering the facts above I am confident that Ango want a deal.
Further, pure conjecture on my part, I believe that Rothchilds involvement points towards a high value asset sale. IMO, it is simply a question of whether both parties can agree on valuation and structure of the deal. If they can great, if they can't my original investment decison still holds and has only been stregthend by Anglos undoubted interest in the assets.
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