Newmont bid for Newcresthaha! This is hilarous --- already stating they are opening to sweetening the bid!!!!
https://www.reuters.com/markets/deals/australian-gold-miner-newcrest-gets-169-bln-buyout-offer-newmont-corp-2023-02-05/
Now- according to Newcrest, they have 27 years of production left at current (2022 levels). Interesting, that's the same as Casino Phase 1 (27 years). Let's assume our Phase 1 is 1/3 of our asset (which we've heard) and that is similar to Newcrest upside outside of the next 27 years (so they offset each other). So let's look at the next 27 years comparison ---
You can see Casino Phase 1 about 1/3 of Newcrest ---
Offer for Newcrest $16.9B...
Our market cap is 1.5% of that with 33% the resource!!!
Quite a disconnect. Yeah yeah yeah...Clarke ....I know it's not apples to apples since producting asset vs. non permitted.
They might have higher grades, etc, etc... I understand and get that .....
BUT I do NOT understand that big of a difference! Offer $240 per oz of Gold equivelant vs. we're trading at the lofty level of $10 per oz of Gold equivalent. Likely Newcrest is going to call this a "stink" bid....so if that's a stink bid...what adjectives would we assign to our current market cap?
As a special note, the comment from Paul that Casino is the single biggest asset in Canada for critical minerals (Cu & Mo). Did anyone else catch that? Even that not doing anything for our market cap it seems!!!! I can't imagine trying to negotiate with Rio right now in Paul's shoes with our market cap where it is...very challenging to say the least.
| Spot | Newcrest Annual | Per year | Casino Annual | Per year |
Au | $ 1,900 | 2,000,000 | $ 3,800,000,000 | 211,000 | $ 400,900,000 |
Cu | $ 4 | 270,000,000 | $ 1,080,000,000 | 163,000,000 | $ 652,000,000 |
Mo | $ 37 | 0 | $ - | 15,100,000 | $ 558,700,000 |
| | | $ 4,880,000,000 | | $ 1,611,600,000 |
| | 27 years | $ 131,760,000,000 | | $ 43,513,200,000 |