RE:RE:RE:Possible NFG Suitors
If you go back to the 2010 period, you will see that mining majors including gold companies were overly agressive in their M & A activity. Almost all at around that time made preposterous acquisitions paying ridiculous premiums for resources in ground, as well as operating mines. The losses they incurred on write downs were horrendous. All went insane in their pursuits of acquisitions. Kinross, Newmont in gold sector are prime examples with their acquisitions of Red Back and Hope Bay respectively. Total write offs within just a few years for both totalled $9 billion and nealry bakrupted Kinross.
Rio Tinto, the 2nd largest mining company in the world almost did not survive, and a direct investment By the Chinese saved their asses. You can go on and on with the disasters. Those crazy times resulted in mining companies being reluctant to absorb risk and they to this day refuse to overpay even when they do risk an acquisition.
Rio is best example as once Iron Ore prices skyrocketed in ensuing years, they absolutley refused to budge in making additional acquisitions. you can go to their website and read AGM and year end reports for at least the last 10 years and you will be amazed at the comments made about M & A., despite making profits that are absolutely insane. Returns to shareholders became the new gospel.It is all about corporate psychology, not about being smart. Heads rolled in many of those companies and the psychology still is in place today. Will that change. Maybe but not yet for some time. M & A now is very reserved and premiums are rational. If you really want to understand it all, spend a few days on their websites reading AGM comments by senior executives, and/or annual reports. It is what it is, and those dreaming here of 10 baggers on this stock should really do some due diligence. I am not saying NFG will not obtain a premium on buyout, it just will not be what many of you think it "SHOULD BE" simply becuse we have an phenomenal resource. NFG will get bought out as both Palisades and ES make it very clear what their intention is going forward, and recent board moves reinforce my opinion. The company has made moves at board level which indicates the direction. I might be wrong, but ES and Palisades alone control the future with 62% of total O/S. Once they get what they consider a good return on their investments, the game will be over and the few retail shareholders can scream and cry all they want, it will be a done deal. I just cannot understand why many here keep talking about "we should mine this ourselves baloney". 62% ownership have repeatedly signalled the future here. And, it is very, very doubtful that psychology will change at the senior management and BOD levels with the majors!