Teranga Gold Corporation T.TGZ

Sum of the Parts...

[mercedesman]

https://www.mining.com/endeavour-mining-to-buy-teranga-gold-creating-top-10-gold-miner/


When two companies, known for reliable execution in mine build-outs, get together, one wonders if the whole will be worth more than the sum of the parts ?

I think in this case the answer will be a resounding Yes !

Cataysts:

Higher gold prices
lower input costs (oil & gas)
Overhead & Admin synergies
Operating Synergies (mines in proximity, mid mgt.)
Greater negotiating power as one of world's top ten producers > 1.5 M oz (Suppliers and Gov'ts)
debt-free within a few years
Dividend just beginning
LSE


I've owned both companies for years.

It's a bargain at this price.

MM

[Consvestor]

Thanks for the post mercedesman.  I know zilch about EDV.  In your opinion they have a good track record?  I have been quite impressed with Teranga management.

[mercedesman]

EDV's track record has been stellar.  it took awhile but their rise to fame started in 2016 when the 6 bagged and held most of their gains ( whereas the vast majority of other gold equities retreated almost back to where they started. ) This was under the tutalege of Frank Guistra and his right hand CEO Neil Woodyear. They executed on acquisition after acquisition, and mine buildout

[theCurse]

MM, I am actually a bit worried as this is the first acquisition/merger by EDV (and there has been a LOT over the years) that the smaller component does not have retail investors on the bullboard up in arms yelling that the deal sucks, they are being ripped off, ratio should be higher, etc.  This included myself when EDV took over Etruscan (post credit crisis firesale) as their first gold

[mercedesman]

I always found the posters over here to be quite savvy ( with a couple of notable exceptions . Lol)  gone are the days of high premium takeovers ( unless a elephant acquires a mouse - which happens)  im not worried about the lack of a premium and wouldn't be if I was a Teranga shareholder ( which I am as well)  my instruction/ education on this was The merger of Equinox