Paulson investor of the decade financing Detour inTime to connect the dots again.
If Kinross was willing to pay $1300 per ounce (read below) to takeover Red Back mines in Ghana they should be able to pay at least $100 per ounce to buyout ITH. But if investor of the decade Paulson has his way they might have to pay even more if he or someone like him decided to finance ITH into production. Detour s mine is similar to Livengood in grade and production.
It would make sense for him to offer a substantial amount of money they need to move forward. Paulson started by getting his feet wet with Detour (see below) and his initial position was worth $150 million paper profit just a few months later. But now he is going in big-time which sets a pattern that could play out with ITH. That would certainly set a fire under the majors butts.
It would make sense for Kinross to be the final bidder on Livengood because they could pay $100-$200 million dollars extra which could put it into production a couple of years earlier than anyone else. Saving to Kinross include cost of infrastructure, manpower, permitting process, and equipment that they have 60km away.
>>>Then there’s Kinross paying a whopping all-in price of US$1,310 per Red Back reserve ounce leaving a negative margin of US$58/oz. There’s a word for that – gambling.<<<
https://www.resourceinvestor.com/News/2010/8/Pages/How-Poorly-is-Kinross-Bid-for-Red-Back-Going.aspx
>>>Detour Gold Corp. (DGC-T30.010.040.13%) was in the market with a $250-million (U.S.) bought deal this morning, which comprises half of the $500-million the company is raising.
The other half went directly to Paulson & Co Inc. (otherwise known as John Paulson’s hedge fund). But there was a unique structure for this portion: $175-million was issued in normal convertible debt, while the remaining $75-million came in the form of cash settled notes.<<<
https://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/detour-gold-gets-creative-with-500-million-issue/article1802727/