GREY:MAAFF - Post by User
Comment by
Brainwave1on Feb 03, 2010 11:04am
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Post# 16747747
RE: I really like the framework
RE: I really like the frameworkAgree with all that. There is a lot working in the project's favour now. And yes, the RBC valuation is absurd, more of a stiff arming to management for not negotiating good break provisions, than judging intrinsic value. But the market is the judge here and the sentiment is not good, at least for now, though that will change. It will hurt us though if that does not change fast enough or to the extent that values the project fairly by the time it comes around to the 3rd party making the assessment.
This may be a naive question, but when/if the option is exercised, the purchase price flows back to MAG... and then what? The company sits on several hundred million or uses it to retire debt, fund other projects, flows it back to shareholders? What that new value is where the jam is for us.