War Baby Has anyone been following CAA-X, Callinan Mines, they just announced their quarterly NPI of $5 million for the 777 mine for HBM-T, HudBay Minerals. Taken from the CAA bullboard:
"Peter Hodson, Sprott Asset Management, recently wrote of Royalty Companies:
“Once deal is signed, they sit back and collect cash…”
Callinan Mines to split and become a Royalty Company with a significant kicker—the War Baby. Callinan has cash, royalty revenue and no debt.
!st quarter 2011 revenue $ 6,761,596.00 ( including 25% withheld) . Revenue projected to be $27,000,000.00 per year or $ .55 /share.
Note: 1.Buy-back stock program to reduce the issued and outstanding number of shares by 2.4 million. 2. A “ War Baby” deal with HudBay appears to be a high probability.
Royalty companies usually trade @ 10-15 x revenue. Callinan appears to be significantly undervalued ."
Let's assume for a second that the CAA 777 NPI of 6% will be somewhere in the range of value of the 10% back-in that BGE has for the next phase of development of the 777 minesite, that being through the War Baby claims. If I were HBM, for a little pocket change I would have a hostile bid out to acquire BGE at say
.40 before you could blink, let alone that being chump change for CAA as well if they chose to improve their ownership position for cheap. Who cares about SanGold, they have properties to explore and mine for the upcoming 7-12 year window.
BGE needs to seriously consider a "poison pill" shareholder protection plan, because if you ask me, when a take-over bid comes a-knocking, without the pill in place, "management" will be hard pressed to sway any shareholders that for the company's best interests we should support them and turn down the bid, letting them creat value and take the company to the next level. These guys are not exporationists, and when they have a gem in hand, like the support they had with Dundee, they let them slip away (or chased them away with their greed tactics and mis-management). Check out last year's information circular,
Ravensden Asset Management Inc., a wholly owned sub of Dundee, directed by, I beleive, Ned Goodman, not your average pumper/dumper slouch, has sold off its 14% interest.
Just some food for fodder, I hope these jokers prove me wrong and either find some gold, or else I, for I, will welcome the immenent take-out bid.