RE:RE:Chinese take-out of Continental Gold at $5.50/sh On the contrary , todays takeover of CNL is priced exactlly at what the market deems it to be worth. A willing buyer and a willing seller agree to a 23% premium , what could be fairer???
Further analysis shows that $1.4 Can billion being spent to buy 11.34 million ounces which is almost exactly $ 125 Can per ounce. Exactly in line with recent takeovers within the gold mining industry.
If we apply that $125 per ounce to PVG's 16.2 million ounces , we gat a value of $2.025 billion , or based on 185 million shares, or $ 10.94 Can per share.
Which suggests that at todays SP of $13.95, PVG is overvalued and potential buyers are not lined up at the door with their chequbooks unless and untill the SP corrects itself
-------------------------------------
MM your comparison of the Continental buyout price suggesting Pretium should be valued similarly based on $125 /oz just don't wash with me.
I looked at Continentals Nov. 2019 presentation and found lots of differences between Continental and Pretium.
You've done mining I'd say you would probably agree that companies making a buyout offer generally want to look at proven and probable resources not so much MI and inferred .
Pretium lists P&P of 13.1M tons at Valley of the Kings and 2.9 million at West Zone for a total of 16M tonnes. They also mine some silver though didn't report reserves.
CNL lists P&P of 3.71 M tonnes gold 10.7 M oz silver in their November report.
Pretium has to deal with winter snows CNL with oppressive summer heat and artisan miners who try to help themselves to easy to reach ore.
Continental showed debts of $235M plus a streaming facility of $100M and a 3.2% royalty
Pretium's short term loan was just paid off and show a long term $413M so similar there
CNL has a mill almost fully built but not in full production until mid 2020.
Pretium is in production and profitable now although I think it could do better.
Where I generally agree with you is on Pretium management, I think they need an upgrade to honest management. I also have reservations on the new board members I'll wait to see. Yes one was CEO at Newmont but only for about 6 mos. During which time Newmomt stock price rose and then fell back then he was replaced.