GREY:MAAFF - Post by User
Post by
Brainwave1on Feb 02, 2010 4:01pm
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Post# 16745144
Value
ValueRBC is essentially valuing it in line with MAG's non-potash divisions. The target is also the current market price and I suspect the analyst stuck his thumb in the air and valued it at which way the wind was blowing. It is not great news in terms of momentum and other market factors playing into the final option value. Enough has been said on these boards and by MAG regarding the strengths of the deal and alignment of interests, although the failure to negotiate a break fee and or up front payments could be serious weaknesses if trust in the partner begins to look misplaced. They have $25m cash on hand and said they are cutting costs and claim to have no other project cash requirement needs until after July. Let's hope, as the MAG people say, that "time will tell" they were right. Having gone long on this for years there is little more to do but wait. For me this is dead money for the next 6 months so one might as well look elsewhere for fun until we have something new to consider in July. It's been fun.