GREY:SWYDF - Post by User
Comment by
CravenRaven101on Aug 26, 2011 4:34pm
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Post# 18984366
RE: RE: bad feeling
RE: RE: bad feelingNothing wrong with the folks sitting at the Boardroom table... I cannot imagine the board approving an unsolicited offer.. OR soliciting an offer for SWY given the potential boon to the provincial treasury... certainly the province will stand to gain from resource royalties regardless of who is running the mining operation, and there certainly is the possibility of the Province recouping it's initial investment by virtue of an outright sale of their equity... BUT the province has also guaranteed a $100MM line of credit AND managment has already agreed to ante up in excess of $40MM for the "highway" to the mine site... and I believe there are ongoing discussions on how much SWY will ante for dragging a powerline up to the mine as well... SO... given that the province is financing.. and SWY is commiting to infrastructure costs for about 1/2 of what the current market cap is sitting at... I would suggest that as a "prospector" SWY may very well only be worth $500MM BUT once the "report" hits the street SWY as mine operator/diamond producer... even a lowball offer will need to be North of $2 Billion...
So... good discussion folks... BUT don't wet your pants quite yet...
it's my opinion git yer own.