Smart ManagementToday, Calibre announced a deal to take over Marathon Gold. The headline number is $345m (Cdn.) payable in paper and $40 million cash for new Marathon shares that Calibre will buy whether the rest of the deal closes or not. So all told, $385 million Cdn. for a company that in about 14 months will be producing an average 195,000 annual ounces for 12 years.
That's a very good deal for Calibre. They are taking advantage of some recent (disastrous) money-raising history at Marathon back in Sept '22 and the prospect of more pain to come. Marathon was still going to have to raise $50 million or so, and given the track record, ....
On the other hand, we have pretend gold companies that are about to splurge real cash US dollars on getting deeper into the steel business. To the tune of $400 million real cash US dollars.
Warren Buffett once said you should only buy a company that any idiot could run, because sooner or later, it would be.