industry buyoutsInteresting that Aurelian and now golden Eagle both getting taken out. My take that this wil bode well for the juniors in 2 respects.
1) That the seniors are out to purchase future reserves.
2) The investors that cash out will have cash to redeploy. If they maintain their portfolio mixes they will look for other gold juniors to invest the cash. I would think Nova should attract a fair bit of buying interest from this money.
Like the sale of Nova Green power. I believe the biggest detractor to this company has been its lack of capital. The best arguments I read for a lower stock value are based on funding requirements.
Nova had 37 million in free cash if I rmember correctly.
Adding 40 million with the sale.
About to begin 25-50 million cash flow per anum from Rock Creek.
The warrants add some more cash in the fall.
So then we have galore creek.
1) BC government still wants to run the Northwest transmission line.
2) New plan will eliminate the dam. (Major cost)
Whatever the new budget calls for will have a good chunk of the work already performed. A lot of the equipment was bought out right. I think galore creek will be an all out go with a much lower capital budget and great economics. On the capital side if you say you right off everything done to date. Start at the point that to bring this to production will require additional capital in the amounts of x$ the economics will warrant immediate ramp up.
Not the time to be short in my opinion dyodd