RE: RE: What is Orvana worth?Falling production over the next year will take a toll on Orvana and its balance sheet.
We all know that.
But, as we have seen, the share price continues to move upwards.
Have we forgotten that they might now be boosting the share price in order to make another acquisition based on equity that would boost interim production ?
There are suitable junior producers out there.
I cant say that I have exhausted every search, but Silvercrest seems to be the cheapest, and meet every Orvana requirement.
Its a very cheap mine, the cash costs are just $328/oz and less than $250 for the first 2 years, its market cap is just $45 million and it begins production in April/2010 at 65,000 oz per year.
It has no shareholders rights plan, so it can be a suitable target
If you use Castle Gold's takeover rates, there would be a 5 fold upside, but that wont happen at this stage of buildout.
However, a quick takeover at just $90 million is not unreasonable and would fill Orvana's gap in production ,while boosting post 2011 production to over 225,000 oz.
Just my view of what might transpire here.