Did Barrick get to greedy?Not the news i was expecting AFTER the halt, but NOT that surprising either that FM decided to go this route. My guess here, is that the good folks over at Barrick HQ probably made some VERY "insulting" lowball offers to FM mgmt/bod and the latter balked & walked away. Probably forcing them to take this action, as described by the news released yesterday AFTER market close.
So what do i think about all this? My take is that IF Barrick offered anything below $25 cdn, it was probably a good thing for FM mgmt to completely walk away and seek OTHER more viable & sensible options. If FM is to recover Cobre, either thorugh the international arbitration courts or by the Panamanian Gov't coming to its senses & reversing their ignorant, flawed & disasterous decision, then FM would be well worth north of $40 eeaassssy........The mines they have, especially Cobre are just too valuable to let go for cheap......
So let's see how this pans out in the next 6 months. With this LARGE captial raise, any concerns of insolvency or liquidity issues have been put to rest and most of those funds i wouls guess, are probably directed at reducing their debt load. To appease the markets, the analysts & investors. Which is a good thing in the long term. So things are definitely looking up now, anytthing below $15 is a steal right now and should be accumulated, as the risks remain VERY low at those levels.
Next up are the national elections is Panama. ANY change is leadership would be a good sign & omen for FM, and would definitely increase their chances of getting the current adminstration off their backs trying to shakedown/blackmailing the company for more money though these so called protests. So if you see the current President & his administration get the boot in the next elections, you could see a significant boost in the stock price as well.......
GLTA