RE:RE:Rodney Lamond's job is done"On behalf of the Company, I would like to thank Mr. Lamond for his service as a director of the Company over the past 15 months and his
contributions to the Company's
operational progress."
They thanked him for his contribution to operational progress. They wouldn't be saying that if he had not helped.
A merger with JAG would be interesting. GDXJ isn't allowed to buy companies with smaller than $75m market cap which GCM currently is under. GDXJ is running out of small miners to buy (they are reaching their concentration limits) so they will be increasing their market cap limit to allow more buyable companies.
A merger with JAG would also diversify countries which the market usually likes.
Method wrote: To be fair he wasn't CEO here so its a little different.
It does make me wonder if it makes sense to combine JAG (Rodney's company) and GCM after the 2018 debentures are converted to stock. There is less conflict of interest if they do not share any board members.
Both are very cheap. JAG will produce 100-110k oz in 2017 but basically has no debt and trades at around 2.8x EBITDA. It has an EV of US$150m.
GCM post conversion of 81% of the 2018 debs would have about 600m shares o/s (pre consolidation) and US$100m w/ debt along with about US$70m EBITDA at current gold prices. Say an all stock deal and a take out at 2.8x EBITDA as a merger on the same valuation would take you above the 2020 debenture conversion price (US$0.13) at about US$0.16/share.
The real upside is the combined US$120m+ in EBITDA with no debt (post conversion) and a USD market cap of US$335m+ at the current low multiple which will mean inclusion in the GDXJ which will lead to a rerating and then entry into the S&P/TSX Index and XGD and maybe GDX. It could feed on itself for sometime.