RE:In the loopCruise,
For the SP of 0.04 an offer of 0.12 would looks very attractive, but let's not forget that the SP has been driven down by a concerted effort by some people to get cheap shares or to show just what they want to set up in the first place...,i.e. to make the offer looks too attracctive, x3, so that it cannot be refused by shareholders who are just too tired to wait around any longer. For the people in the know and shareholders who vave no inside information, but with teflon coated stomachs, then they could ignore all the noises and compute AZX valuation based on the stuff they have in the ground.
But they need to wait for a few things to happen first
- get a clean slate of directors;
- install a competent management team;
- Clean up the balance sheet to get some cash in place, at least to get AZX day-to-day operation in good order. This would include the sale of non-core assets.
- Consider various options to re-package the company to make it look attarctive and more valuable to potential buyers or JV partners. This would include further drilling to remedy the shortcomings identified in the last updated RE for Orenada.
In my opinion, AZX management may be justified in criticizing EO for spending too much money for a "faulty" drilling program and painting too bright a picture for his projection of the RE for Orenada, and future prospect for the property west of Orenda. But, at the same time it must be recognized that quite a bit of drill data were not included in the latest RE update (cut-off time). In addition, soon, when the Technical Report has been officially be filed, we would have a chance to examine the conservatism in their application (.e.g. interpolation, extrapolation, and exclusion) of the available data by the new consultants. Quite often, relevant blocks of data can be included (to increase the RE) if some additional information can be supplied through e.g. in-fill drilling, which would not cost a significant amount of money.
Let's suppose that the sale of the non-core assets (the big chunks in Manitoba) can fetch enough money to allow AZX to carry out an effective recovery operation, then would you accept an offer of 0.12/s or ~$57 M (0.12 x480M = $57M) , noting that the enterprise value of PRB is~$143 -50M cash = $93M, and that the global resource estimate for both company is about 1.4Moz (AZX RE: 2.4Moz - 1Moz = 1.4Moz for non-core assets)?
GH
cruisemissle2012 wrote: I wonder if the company offering us .12 a share knew about the “botched” drill program when offering in December or if management tried to slip a fast one by them before the numbers came out. I’m hoping for the former considering we are voting those who wanted to sell in the first place.... and a 10 to 12 cent offer will be on the table when the legal stuff clears. These guys had their day in the light and blew it.... time to move on. best of luck and happy Canada day