Sunday Telegraph Comments24 May 2021 10:40
As a long term holder of BCN, I like to keep my views to myself, but felt obliged to make a comment to the Sundaty Telegraph comments section (at the foot of the Bacanora article yesterday). This may be a good way of increasing journalist interest in the issue.
For the benefit of this blog I have repeated below.....
Being honest, and as a long term holder of BCN I do not feel that this is really a UK government issue. The company is listed on AIM (in the UK), having moved from a Canadian listing, but other than that its commercial interests are in Mexico and (indirectly through Zinnwald) in southern Germany.
The real issue in this case (in my opinion) is corporate mismanagement. Following recent capital raises, BCN's commitment to the project is now notionally funded to completion. The two most recent broker forecast for BCN were from Canaccord Genuity in February 2021 (at 85p) and from VSA Capital (120p) in March 2021. With this in mind it is difficult to understand why the Board are minded to recommend a significantly lower offer at 67.5p. Surely they should be looking at their collective shareholders' best interests and at least aim for an offer to come in on the basis of broker valuations?
Situations such as this smack of possible collusion, but given the limited feedback being provided to shareholders it is difficult to understand if there are other motivations involved.