the general investment thesis for Volta should remainI would not understand anyone who would choose to bail at this juncture. Most on this board have intimate knowledge of the value in Volta. It seems by market reaction in BTO share price that we are alone with BTO management in seeing the value. The Kiaka project is going to be getting a great deal more exposure to a much wider audience and an American exchange. We are early to the game and assuming that we and the BTO management are correct I would think we should want to hang in until our value is realized.
Not only are we going to get a wider audience, but you can consider that the financing needed to build Kiaka mine on a larger or on a smaller scale is going to be available at the drop of a hat now, without the signicant borrowing costs or dilution involved had we developed the project on our own. BTO Earnings for the first nine months of this year alone would have paid for a large scale development of Kiaka. Judging by how they fund other developments, they are likely to use some combination of a credit facility, earnings, and cash at hand. Not only the money, but all of the expertise BTO has in mine development, that's all available.
And not only that, but BTO believes that Kiaka is a technically sound project. So you can consider that your investment thesis has been vindicated. Seems to me that all the commentators (expert and otherwise) who doubted that the project was feasible have been proven wrong, not by the stock market, but by the people that matter in the real world of mining, this group who are extremely selective in acquisitions (over 200 projects looked at in past year - and we were the chosen one) and have one of the best due diligence teams in the mining business.
If you remain convinced, as I do, that the NAV of Volta is at least 1 billion, then this acquisition will utlimately have an impact on BTO share price, and why would you want to miss out on that, esp. if you maintain your thesis about the value of Volta assets.
As well, on a macro level, it does seem that the general markets are topping and due for some serious corrections, which will lead investors to alternatives, such as the gold sector. All in all, a terrible time to short BTO, and a wonderful time to capitalize on your accumulated knowledge about VTR's assets.