RE: Stewy2 Dec 2017 21:58
Hi Stewy... couple of points to consider...1) management still believe that next year is going to be highly cash generative..from offer document: “The outstanding debt is intended to be repaid in full, and surplus cash flow generated, from the increased production from Cap Oeste as this ramps up and achieves its target level of production.” If this is achieved in any way/shape/form then I think perceptions may change quickly. 2) the leverage to a gap up in gold price should be very high. Presumably some of these 220 properties are not being developed because at current pog They are not economic. But clearly if at some point we see a significant gap up, say to $1500+, then many of these properties become of interest. In that scenario, we could see many multiples on the price, whereas the max we can lose is 100% to the downside. Risk for me is miguens intentions - but presumably if he was looking to take the company private he would not be asking s/holders to relax the mandatory offer rules - he would just offer now. Anyway, my average here is around 1.7p so I’m well down - but still hopeful the risk reward works in our favour. Best wishes, ww