RE: Calibre RNS4 Jul 2019 06:14
El,yes Calibre shares have been poor performers too over the last 7-8 years and Cnr imv have been good con servers of cash.calibre have a m cap almost identical to Cnr and a resource similar in size.b2 havnt exactly exited Nicaragua ,they have passed on the reigns to an ambitious hungry company ,will recieve$60 m and will have a 30 p c stake in the company with 2.4 m oz eq extra.
Pretty unlikely that this deal would have happened without calibre board changes last Nov .This deal has been in the making while mc mentioned the posibility of buying b2 gold equipment.Not surprising that b2 have been negotiating with both at the same time but with a significant stake in Calibre it is not surprising they have done this deal.with a 31 p c stake in Calibre ,b2 can quite conceivably have been setting arrangements in place regarding Cnr for Calibre.
A toll deal may be attractive to Calibre to start paying off debt straight away .The Newmarket guys obviously see an opportunity to turn a pretty badly performing explorer and b2 underperforming mines into a value creator.I note also that this deal is equity funded ,diluting Calibre holders further at a low valuation level.If Calibre make a success of this oneway or another it should put Cnr in the spotlight.yes the aisc determine the profitability.calibre expect to significantly improve this.just a question of how now! obviously if the gold price should appreciate significantly from here that extra $3-400 I becomes less important but toll mining could be attractive to Calibre while they drill up further high grade targets at libertad and elsewhere.
Calibre present m cap £15 m and 100 m acquisition equals Cnr mine build costs.I wonder what the m cap of Calibre will be when/if the deal is finalised.It puts into perspective some of the fanciful valuations touted sometimes though .
Makes me wonder if as at Calibre ,heavyweight Canadian additions to our board would be positive for moving forward.shame the Newmarket guys went for Calibre instead of us.I note Beaty and Lundin are buddies who have collaborated in the past.interesting to see them invested in separate competing companies in this case.I have been a bit disheartened by Beaty not participating in recent placings or buying on the open market at such low prices but no telling what may transpire.equinoxs Brazilian mine has just come into production and like Calibre they are looking towards fast growth to mid tier status.
The gold market is entering a very interesting phase now and although risky my pf is spread pretty heavily across goldies now .They may not all be winners in the long term but after almost 10 years Cnr will remain one .I will be taking out profits along the way in all rather than just sit in a sector that will probably drop quickly.lessons learnt from the last bull run.
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