RE:RE:MemmoriesVoted against the merge myself. Was a bit torn, since DML had a ton of experience and a revenue stream from mill in Eastern Athabascan, not to mention decent (but not as eye popping) resources.
I was greedy and wanted a bit more of a premium because FCU was hitting nutty holes while DML was pretty quiet at the time. Would have likely voted YES at a 1.4 /1.5 shares for 1 ratio or more....in hind-sight - sure - overly greedy. I don't think FCU and DML sold the benefits of the merged company at the time - nor shared their fears of a lengthened bear market in U - which the merged company would have likely weathered better than individual one (although the slaughter has been across the board - can't think of a company in U niche unaffected).
Still maintain that I think FCU (much like NXE that started drilling a few feet away on the same conductor) would have 300-400 million pounds by now had they limitless cash - they just have too big a float of shares. So they have been frugal for at least 2 years now - and also don't have debt such as DML or NXE.
We also didn't know DML had resources that could possibly mined via ISL method at the time - that has SIGNIFICANTLY improved economics for DML - whereas at the time - FCU zones looked quite a bit more economical - even before the shallower land zones looked of a decent size.
Call IR and ask what plan is next - I did and gave my 2 cents of what I wanted to see - and they replied that since most people there are shareholders themselves and Dev/Ross obviously are - they don't really want to dillute at the absolute worst time either - so they are exploring debt - maybe something like a "convertible debenture" - as they have a few STRONG institutional investers that would support/faciliate that. When I called them a few weeks back, they thought they might release news on that "within 30 days" - I'm guessing continued share prices falling has made that more complicated - if there is some "convertible" or "flow thru" features - etc- they might need to reprice things a bit.
So, you can ignore the bashers trying to say FCU HAS to finance at worst time via shares - they have other options and are focussing on borrowing in some manner.
So easy to bash - but timing has played a huge role. FCU got unlucky in a lot of ways - but there is still a bunch of U for them to expand/find on that conductor which is pretty open in a number of directions and at depth - they just had to slow/stop exploration/expansion drilling - under these low U spot and U stock prices.
I think FCU had/have the best 2018 TSX mining drill hole, and currently best 2019 TSX mining drill hole - and pretty close to a 100% HIT rate when expansion drilling - but just not enough cash to do it........
My point being - had FCU kept drilling (more expanion on same conductor than wildcatting) they would likely still be a higher share price than DML....just had to be prudent and stop. NXE borrowed and kept drilling and has more pounds - deeper but not under water. Debating NXE vs FCU beyond size of found pounds so far, and water versus depth is silly - they are within spitting distance of each other on the same conductor with basically the same basement rock, and overburden, and the same logistics with respect to roads, air, mills, etc.
A merge with NXE makes total sense for economices of scale, flexibility, and mainly a shared mill expense. A merge including DML as a 3rd partner would create a dominant Canadian U company to rival Cameco......
NXE took the risk of debt (not a small amount either- although they retain a decent cash balance) - FCU didn't. That allowed NXE to expand their resource quickly which is reflected in share price. If FCU did that, I'm pretty sure they could double their resource quickly, vastly improve economics by expanding the shallow, under land pounds in the Western zones, and improve share price too, but is the timing right? Is it really worth it now while we are at U share price/bear market rock bottom
NXE is hitting AMAZING holes and they hit a 52 week low 2 days ago, just like FCU did in previous years - just doesn't matter AT MOMENT - it should matter later, assuming U bear, goes bull........
None of the PFS's did much for any of the 3 companies, but DML is a bit more of a mature company, with more diverse zones, and mill revenue, and with the improved economics (which NOBODY on this board or any other I have read, predicted), so it has weathered storm better. That could change in a heartbeat. I maintain FCU and NXE have higher upside due the richness of their U grade, AND the yet unfound expansionary pounds that seem very likely sitting right there.....When pounds in the ground mean more, then I think FCU and NXE share prices will rise at a faster rate than DML purely on easier to find richer Uranium pounds right next to existing amazing drill holes.