RE:RE:RE:RE:I'm Excited!I do totally agree with your analysis mercedesman. GDX has dropped from $45 to $35 in the past few months and that to me totally explains the price action.
Once the merger is completed, the new company will be the best of the top 10 senior producers by many metrics.
I remember Sebastein saying awhile ago, after the merger was announced, that he thinks EDV shouldn't grow beyond 2 million oz a year, which they could reach with one more mine build. They would still build more mines after that but with the purpose of maintaining that 2 m production. What that will mean is they will become overwhelmed with cash (if gold price stays anywhere close to present), since the mine builds will be a small % of their cash flow, ditto exploration, and they don't need to acquire anything more.
I still see a $100 share price possible. With 2 m oz production, a $1000 margin as they mostly have now, 85% ownership (Gov's have a 20% to 10% stake) , that leaves $1.7 billion a year for royalties, taxes, office , exploration, and mine builds. To maintain the 1.6% yield on the dividend at at $26 billion Market Cap (I counted 260 m shares out post merger) would cost around $400 m a year. Seems quite doable.