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Minefinders Corporation Ltd T.MFL



TSX:MFL - Post by User

Comment by HonestAbeon Dec 12, 2010 5:28am
408 Views
Post# 17834837

RE: Targets

RE: TargetsIf this company does not get its production problems (bad luck?) out of the way for 2011 and the stock still trends sideways next year despite much higher prices for gold and silver, then you will find two potential scenarios occurring:
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1. The company dilutes at a disgustingly low share price to raise funds to attempt to grow the company, since they cannot generate meaningful cash flow from continued poor production way below expectations and they bear the burden of considerable debt.
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2. The company is subjected to a hostile takeover by a cashed up and more experienced senior producer that will be able to properly and fully exploit the potential of Dolores.  The buyout price premium will leave a sour taste for shareholders since the sideways trading base will not generate a meaningful number despite the premium.
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I find it almost unfathomable that Minefinders could be a negative cashflow producer in Q3 and probably Q4 with these bullion prices ... I guess that's why they named the company Minefinders and not Mineproducers.
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