Valuation and Who is Buying at $3.51?
I haven't posted here in years (use the same handle on ceo.ca or seeking alpha). I am in heavy on the warrants. Somebody is buying this stock around $3.51 in large amounts. Could be funds or big traders. GCM seems to be starting to form a base after those 2 articles came out on Seeking Alpha the same day. Looking at this valuation, it's just ridiculous. Anyone talking about $1.50 needs to understand GCM hold almost that much per share in other stocks (Aris and Denarius) on a non-diluted basis. It looks like the market is attributing no value to any Colombian assets right now (Aris shares, Segovia). Not sure how Toroparu has such a low value attributed to it as well. Sure there is execution risk on getting the mine built on time and on budget but it's in a different country at least. Worst case if Colombian assets go to $0 (I highly doubt that would happen as an underground not open pit miner) Toroparu can carry this company for years. I was curious if there are any covenants in the bonds relating to cash flow of the company (I see this in the energy space a lot). Other than that, they have $315.1 M in cash and the $138 M stream from Silver Wheaton to get it done. Low share count. Also the 10 M warrants expire April 30, 2024 which would bring in another $22 M or so. This is the cheapest profitable producer I have ever seen if my memory serves me correctly.