Mergers and Acquisitions5 Apr 2019 09:30
"...Having a resource asset with no plausible development scenario within your company’s financing means is a detriment to valuation. A $25m market cap company aiming to build a $650m mine is not a winning strategy. This strategy only works with a truly one-of-a-kind, top tier resource assets that are bought at an early stage with huge premiums. These are the mining industry’s “unicorns.” And we haven’t seen one since Arequipa in 1997 and Francisco Gold in 2002. (Arequipa: $0.60/sh to buyout price of $30/sh in just nine months based on a massive discovery in Peru. Francisco’s El Sauzal’s discovery in Mexico went from nothing to a take-over $40/sh based on exploration alone).
5) Investors need things to get excited about.
Make sure there is more to your story then just the PEA or the feasibility study. Investors aren’t investing and bidding you up because of what you did, they’re investing because of what they believe you’re going to do. As crazy as it sounds, try to ensure that whatever economic study, resource estimate, etc, you put out out is stale-dated by the time it is made public, because of what you are about to do next and what’s to come......"
Mirror, mirror on the wall............
Thanks again Padmaster.