OTCQX:GLDXF - Post by User
Comment by
Heywood_Silverson May 10, 2021 8:55pm
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Post# 33170974
RE:lettuce
RE:lettuce I did vote yes in favour of the transaction. I see two possibilities in play here:
1) Either there are no other suitors out there, indicating that GCM and GLDX were meant to be partners all along or
2) The initial offer from GCM was strong enough to ward off any potential offers that may have been in the offing otherwise.
GCM and GLDX are likely better together than standalone: GCM needs strong projects in their pipeline and some geographical diversity. Boosting their output will only strengthen how the market views them. GLDX obviously needs a strong partner to unlock the value at Toroparu and GCM did make a legitimate offer.
GCM's 2011 highs of $30 USD are likely (after increasing for inflation) closer to $50 USD by today's standards. This would indicate about a 10 bagger potential for the shares, not too shabby. Plus, we get some nice dividends in the meantime. That being said, I won't be completely married to GCM. I will have a tidy position and that allows me flexibility if I want to lighten up to take advantage of other opportunities. I will keep an eye on GCM, but things are indeed looking upwards after the merger.