IamGold is a potential takeover target by a larger major! IMG is undergoing a major transformation!
If other intermediate miner's shares, continue to perform better than IMG, this company will keep becoming more and more attractive to other gold majors, as an acquisition target!
For all we know, such a plan, may already be in place, with IMG shares, being quietly purchased.
Right under the noses of shareholders, who remain completely unaware, a larger company can acquire, a very large block of shares, very cheaply, for as long as it takes.
At the appropriate time, they have to announce their tender offer, openly in a press release.
What better time is there to begin this process of acquisition, when the volume of shares, actually trading, remains so especially small?
They can bide their time while many shareholders, in their target company, remain determinely focused, on their shorter term, day trading strategy!
It is not in the interest of any potential purchaser to let present day shareholders, know what they are doing. They just let shareholders gradually, sell off their shares, into their lap.
That's how it works!
At the appropriate time, the acquisition is announced and usually the tender offer is made at a significant premium to the present day share price.
"...A company may purchase and absorb another company outright, merge with it to create a new company, acquire some or all of its major assets, make a
tender offer for its stock, or stage a hostile takeover. All are M&A activities..."
https://www.investopedia.com/terms/m/mergersandacquisitions.asp For example, why wouldn't a larger gold company, such as Agnico Eagle, very familar with operating profitable mines in Canada and abroad, simply jump at the chance to acquire, a take over candidate, as valuable, as IamGold, is about to become!
At this moment, the timing would be perfect, for such a move!
And they would have the financial capital, mining expertise and management acumen, to monetize all of IMG's assets, much more rapidly and profitably!
This is Agnico Eagle's, company strategy:
Strategy
"...Our primary goal is to ensure we develop a best-in-class project pipeline to replenish mineral reserves and production, while maintaining the quality, manageability and fit of our future portfolio.
Agnico Eagle's mission is to build a high-quality, easy to understand business — one that generates superior long-term returns for our shareholders, creates a great place to work for our employees and contributes positively to the communities in which we operate.
Building and maintaining a high-quality project pipeline
We focus on growing our gold reserves and production in mining-friendly regions, acquiring early-stage opportunities, and adding value through our exploration and mine-building expertise. We are well positioned to continue growing output through our internal expansion projects, our pipeline of projects, as well as through potential acquisitions, joint ventures and partnerships. We will, however, continue to take a prudent and measured approach to development while maintaining financial flexibility..."
IamGold is shifting the focus of its mining operations into Canada. Burkino-Faso may be a key present day revenue source for the company. But if Agnico-Eagle acquired IamGold, if deemed necessary, it could be easily sold, for a significant amount of money, with no questions asked!
IamGold managers may have good aspirations, to quickly grow their company. But other, bigger miners are also watching them closely! They may also, have a similar desire to grow. But they also need to replace, many of their dwindling assets!
From a shareholder's perspective, who wouldn't like a bidding war to start for their shares?
Maybe IMG management, has similar aspirations?
All the best! Java