RE:RE:RE:RE:RE:RE:RE:POG now at $2379 US Hey, yes thanks for your input.
You would need to look back years ago at initial feasibility study and CapEx increases due to Covid and geological difficulties of mining faces the first few years into LOM. There were many setbacks and delays during final construction period including commissioning. Commissioning was pushed back a few months and announced while mill wasn't fully ready while gravity circuit wasn't operating. Commercial production was a dud as mill failed immediately on September and wasn't operational for weeks. Instead of planned 70k oz in 2023 we barely got 30k oz. You also had immense pressure from CapEx due to TMF not being budgeted into construction costs, in order to save costs to make the feasibility study more appealing during decision process years back.
We all knew Magino can only make money with volume post planned extension or if higher grades were encountered 1.3g/to+. Neither of those have materialized while we had another 'scheduled' mill shutdown in January.
At that time or was obvious additional liquidity will be required and options were put on the table.
Alamos came in and offered premium due to operational synergies, they are able to push through excess high grade ore because their mill is only a 1,200 TPD operation, will result in immediate shareholder value creation.
Magino had a short runway without unexpected issues, with debt repayments and hedge requirements, operational issues pushed them over the edge.
I realize most aren't happy with the offer, note end value will be closer to $.60-70 cents once Alamos appreciates and FC increases output in 2025. There wasnt another way, unless you wanted fire sale as creditors were salivating over the almost lifeless corpse.