LSG at $1.3 is very similar to CRK. Is NGN going to merge itWould lakeshore gold, symbol, LSG and its big pockets majority shareholders be foolish and stupid enough to merge with NGN as Luxor capital groups, is?
If not, there is little difference between LSG ie lakeshore gold and CRK, ie crocodile gold, and CRK shouldn't merge either.
LSG is in gold mining safe region of canada, CRK of australia, has 436 million shares outstanding, CRK 486 million shares, mines roughly 180, 000 oz of gold a year, CRK roughly 240,000 oz a year, profits of roughly $12 million first quarter, CRK of roughly $15 million, LSG at average cost of $800 or so per oz, CRK of roughly $950 or so, (since CRK is in a more inhospitable region and problem of once in a while monsoon flooding issues), with LSG's roughly 7 million oz reserves of all types vs CRK's 8 millions oz (both with 20 years mining life), and LSG’s overall better grade of gold per ton, also accounting for lower mining costs per oz in extracting it.
The differences of the tradeoffs between LSG and CRK and different prices of $1.30 LSG and 30 cents CRK, are emphasized at the bottom low of the gold era correction cycle, and would be much less emphasized as the gold era and gold metal price returned strongly and consistently over the next years as they are expected to with all the world's problems coming to a head this year 2015 . With gold expecting to get to at least $5000 per oz, because of all those problems, and as high as $25000 if the US led world economy falls apart and the US’s is replaced as the world leader in financial, banking and ideology areas.
This just looks at LSG's reserves of all types – roughly 7 million oz.
https://www.lsgold.com/Our-Company/Profile/Overview-of-Assets/default.aspx
here's CRK's of roughly 8 million oz.
https://www.crocgold.com/files/140609%20Summary%20of%20mineral%20resources_v001_e34pm1.pdf
This looks at LSG’s overview at WSJ, ie wall street journal, of $12 million profit Q1
https://quotes.wsj.com/CA/XTSE/LSG
This looks at CRK’s similar overview at WSJ, ie wall street journal, of $15 million profit Q1
https://quotes.wsj.com/CA/XTSE/CRK
here’s NGN’s which is a terrible overview since doing miserably.
Well sometimes WSJ shows NGN’s terrible overview, sometimes not.
https://quotes.wsj.com/CA/XTSE/NGN
There is probably enough trade offs that CRK should be the same price as LSG at $1.30, but at the bottom of the gold era’s correction cycle, the present weaknesses of CRK are emphasized and penalized more than the strengths are rewarded, by the market place. Hence LSG is at roughly $1.30 and CRK at roughly $.30 ie 30 cents roughly, fair or not fair, and many think very unfair.
After NGH’s proposed merger with CRK's 476 million shares, with plans to merge other good junior companies in it after that, NGN of course can only do that if consolidates CRK’s and NGN’s roughly 50 million shares down by 5 to 134 million and CRK’s shares of them at roughly 105 million.
NGN would have to do a similar consolidation if not as much, if it ever merged LSG’s 436 million shares and CRK's shares now at roughly 105 million of NGN’s 134 million shares. The consolidation would perhaps be by 2 so the combined shares of 134 million NGH’s shares and 436 million LSG shares would go from roughly 570 million shares to 285 million shares of NGN or over twice the former 134 million shares of NGN.
Do you really think the present big pockets majority shareholder of LSG, whoever they are, would accept that merger and consolidation considering LSG’s present productions, profits and future of them of a good 20 years like CRK’s mining life outlook? Only if they are as stupid as CRK’s big pockets majority shareholders of CRK, namely Luxor Capital group.