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Red Lake Madsen Mine Ltd LRTNF

Pure Gold Mining Inc is a gold mining company, located in the heart of Red Lake, Ontario, Canada. Its vision is pure and simple, to build a profitable, multi-generational growth company in the world-class gold mining district of Red Lake. With 100%-owned, fully constructed operating PureGold Mine, a multi-million-ounce gold endowment, and significant exploration upside, the company's value-maximizing strategy is to pursue operational excellence, while investing in systematic exploration and phased expansions to fuel discovery and growth for the future.


GREY:LRTNF - Post by User

Comment by thelostarcon Jan 30, 2022 11:08am
375 Views
Post# 34375982

RE:A comment that really caught me.

RE:A comment that really caught me.Animal, I agree, now is a perfect time to swoop in and take the company for cheap. Financially, it makes perfect sense.

However, there is more than financials involved in such transactions. The acquisition, since it is into a new region for Anglo, would have to fit a strategic and reputational criterion. For example, if PGM flops and Anglo is holding the bag, and having to cancel contracts and lay off workers as a result, that is not a very good start to their Canadian dream. Furthermore, reputationally, Anglo does not want to be the company so desparate to diversify its asset base that it buys PGM before seeing a good turnaround, and is left holding the bag, becoming the laughing stock of the mining sector. Thus, sometimes, big companies will wait for the turnaround in order to save face. A CEO's worst nightmare is a reputational scar. Anglo's CEO will not want to take that risk, even if they have to pay a bit more for it later on after the turnaround.

Also, when bidding real low, it attracts attention from competitors. What if Anglo bigs $400MM tomorrow, won't Agnico Eagle and Kinross and Newcrest and Evolution be looking at it like, wait a minute, we can also make an offer, then the price goes up and up. That would be great for us retail shareholders, not so great for Anglo.
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