Quick profits aren’t always best; patience pays Senior miners looking for profitable M&A deals drool over companies like TGZ. They see discovered resources and cash held by said companies, they see the likelihood of more of same in the future. Unfortunately for them, (senior miners) the companies they desire to gain control of are owned by investors who understand the true value(s) of their companies. True values known? Senior miners detest investors that comprehend the value of their “successful, growing companies” - Comprehension of the value of something owned, that might be sold, demands that any and all prospective buyers must pay more.
IMO TGZ is a “successful, growing company”, that demands a more equitable value be assigned. And while this re-evaluation has not occurred yet; IMO the senior miners’ silence on this issue, (and their failure to approach TGZ management and investors with an offer, supports my belief/assumption.
The link to an article entitled, “Gold M&A 2017”, shown below, appears to support my conclusions.
https://www.docdroid.net/dWTPlao/gold-ma-2017-the-sleeping-giants-are-stirring-rbc-capital-markets.pdf.html Carefully read, one finds TGZ, (in present state) offers an approximate 5% IRR* (assuming a 40% premium on share price) to senior miners with take-over aspirations; this is in contrast to 12%, (or more) IRR* for financially struggling, or less developed companies – TGZ shown in various charts presented in Gold M&A 2017 article.
*IRR = Internal Rate of Return (after taxes)
IMO investors willing to wait to end of Q2, (or sooner?) will be rewarded for their patience.
JMT