RE: John Meyer on Vox re BMN23 Oct 2019 15:55
John Meyer 23.10.19 on BMN (audioboom.com) from 6.46 transcript
"Yes again we've got quite a number of clients in the mining sector and the first of those BMN announced today it's done a great job on renegotiating the terms of its Vanchem acquisition. I don't think anyone in the market was aware of this. They've managed to knock I think it was $14.5 million off of the purchase price and they've deferred another $23.5 million of the cost through the issuance of convertibles.
Now by my calculations BMN had enough cash to pay the original negotiated purchase price, but they quite rightly went back to the owners of Vanchem and said look boys the vanadium price has pulled back ... we need to spend some more money on revamping these assets when we get hold of them. There aren't any other buyers around and I think that's the key point. There weren't any other immediate buyers around, we would like to pay a bit less for it and by the way we're going to give you a convertible note and it will give you a bit of upside, but actually it will help us to defer the costs so we've got some more money to pay for the development of the Mokopane mine and things like that. I would call this a textbook management deal. It's really smart. Absolutely the right thing management should be doing. I'd love to see more companies do this sort of thing."
"Yeah yeah. Bla bla....." (JW)
"Well this is what you pay management to do as an investor. You should pay them to do the best possible deal on behalf of the value of your shares, and if only we saw this in other cases. We were writing about Sirius Minerals this morning we watched the capital cost of that project go up and up, but management don't seem to have been able to add value. All they've done is while they draw their fat salaries out of the company, and they are pretty fat if you look at the annual report, but there seems to be this massive erosion of value. That's simply not good enough."
"Yeah yeah cool. Bla bla ..." (JW)
https://audioboom.com/posts/7403934-john-meyer-on-gold-and-4-resource-stocks-plus-glen-goodman-on-bitcoin-libra-and-crypto
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