Excelsior
11 hours ago
Yeah, as mentioned several times now, it is a bummer that Santacruz was halted for this run higher in the PM stocks the last 6 weeks, and also when they put out a good Q3 Earnings report, but the halt was forced by the exchange due to the technical reports they want about the new properties, since this is considered a major transformative transaction for the company.
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I’m still constructive on the overall plan for them to pick up several mines (and even power plants), and a much larger production profile. I don’t see Bolivia as that risky (especially as compared to Mexico which has had plenty of challenges over the last 2 years with jurisdiction risk), and there are many other mining companies operating in Bolivia.
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Also, I don’t think the validity of the transaction will be demonstrated immediately, as it usually takes the markets a while (sometimes several quarters) to process the strengths, weaknesses, opportunities, and threats of a substantial acquisition. However, as you noted, they do need to raise $20 million in capital as soon as they are unhalted to facilitate this transaction, and that will be odd after having been halted for so long, and missing the opportunity to have a share-price increase before it happened. It is what it is though. If there is a big dip on the financing news, then I’ll buy into that weakness, because overall I like this plan to grow through the acquisition of non-core Glencore mines. That is far easier and more cost effective than trying to do that many mines from grassroots exploration to production and would take years instead of months.