No one said anything about being in regular contact or having a relationship. Questioning management is just good due diligence and if you are arguing against questioning management of companies you are invested in then I think that attitude speaks for itself...
I doubt it CF, in fact most of the people that come on here to moan about the share price (that's all they care about) I expect have never considered contacting the management of the company they have invested in.
Probably because they realise they have nothing intelligent to ask and they only question that ever comes to their minds is "why isn't the share price higher?!". Then they might feel like adding some disparaging remark like " onion head" or thinking there is a conspiracy by management against the shareholders. Has to be someone else's fault, says the ego of the half-wit.
If there are multiple interested parties then be sure it will go for whatever the current fair market price is. In recent years mines have been going for bottom dollar, so we'll just have to wait and see what a derisked, proven resource with excellent IRRs is worth in the current market.
https://firstmajestic.com/investors/news-releases/first-majestic-announces-proposed-sale-of-the-la-parrilla-silver-mine-for-up-to-us335-million
"The La Parrilla Silver Mine is a past producing silver, gold, lead and zinc operation that was placed under care and maintenance by First Majestic in September 2019. Golden Tag is a Toronto based mineral resource exploration company focused on the exploration and development of the San Diego Project, in Durango State Mexico."
So FM have just sold a non-producing mine for US$33.5m:
https://firstmajestic.com/projects/exploration-development/la-parrilla/
"The La Parrilla Silver Mine is 100% owned by First Majestic Silver Corp and is comprised of mining concessions that total 69,478 hectares. The property has known mineralization throughout, with a complex of five underground mines surrounding the mill including Los Rosarios, La Rosa, San Jose, Quebradillas and San Marcos.
The property began operations in October 2004 at a rate of 180 tpd. It recently underwent a fifth major development project that further expanded the mill to 2,000 tpd (from the previous 850 tpd). The expansion was deemed commercially effective on March 1, 2012 and the new parallel 1,000 tpd flotation and 1,000 tpd cyanidation circuits became fully operational.
In September 2019, the Company suspended production which includes all mining and milling operations at the La Parrilla mine. The Company continues to operate a Central Laboratory and a Research & Innovation Centre at La Parrilla."
H50 it's not actually as bizarre as it seems. The point has come where we either build the mine ourselves or we sell the asset to someone else who will. The government want the mine built, employing people and generating tax revenue as soon as possible, if we don't get on with building the mine then we have to sell to someone else who will. Condor can't simply go into hibernation and wait for the market to improve, the government will cancel our permits! Yes, timing could be better but that's not exactly in our control is it, and the sanctions really did a number on us.
It is the opinion of the board that there is no benefit to shareholders in taking on the not-insignificant risk of construction, along with attempting to raise the $110m required in difficult markets with sanctions hanging over us. We'd be diluted to hell, and there's no guarantee we could even pull off the build successfully without requiring more time and money. I actually tend to agree. Perhaps if raising the money was easy then we could go for it, but that is simply not the case.
Our only option at this point is to sell the asset, or the company as a whole, for whatever the going rate is in this market. That is the real question now isn't it - what does an economic, derisked gold resource go for these days? I guess we're going to find out.
So I don't find it bizarre, it makes perfect sense why the board have decided to go for a sale. I just hope that someone is interested in buying at a price we can accept (though may not be overly happy with).
Punter is right, it is in all shareholders interests to take part in the offer and see the company through the sales process.
I know that many here are unhappy with MC, but if we stand back and look at the situation objectively, he has managed to get the company to a production-ready state with a very economic resource. The market is not pricing condor correctly, but then again I believe more and more that markets are simply broken these days and I have little faith in the price of anything right now. If our share price was 50p right now and they announced a sale I doubt any of us would be unhappy, after all that's what juniors do right? Prove up a resource and sell it to a larger producer to build and operate the mine. However the share price is languishing, but then so are many other gold equities right now. The sanctions on the ministry of mines was such bad timing and we really are so unlucky to have the wind snatched from our sails right at the point where we'd finally be ready to sell or go for production. We really can't blame MC for this, no matter how annoyed we are at the share price.
I will take place in the offer and I truly hope that Jim and Mark can sell the asset for a decent return. I believe we should be able to expect updates on the process throughout Q1. If a sale goes through then I expect shareholders will either be paid a divided or since this is an asset sale a buyer might prefer to takeover the company.
Err, what?!
"Ana Paula is permitted for an open pit mine with measured and indicated mineral resources of 1.46 Moz gold at 2.17 g/t gold and 3.27 Moz silver at 4.8 g/t silver."
"The company said that the purchase price for Ana Paula is US$10.0M cash, adding that subsequent milestone payments are comprised of US$10.0M of cash payments and US$10.0M of cash or share payments."
So what is that US$30m total for a permitted open pit mine with measured and indicated mineral resources of 1.46 Moz gold at 2.17 g/t gold and 3.27 Moz silver at 4.8 g/t silver?! Surely that cannot be right?
I share your concerns tester, but doesn't it seem crazy that the project wouldn't sell?! To think that a gold producer wouldn't jump at the chance to own a fully permitted and derisked mine that can churn out 100,000 ozs a year for 9+ years seems pretty unreasonable no? Then again, I think we are all so jaded after so many disappointments here that we can't quite believe that it could be so straightforward now. After all, isn't this what developers do? Derisk a mine and then sell it? I guess we'll know soon enough.