RE: TAKEOVERFor those that continue to castigate the buy and hold approach in a bull market, today’s offer from EURO is more proof the strategy works when fair value is attained. Our group is of the same opinion the offer could be higher and it still may. Before voting in favor of EURO's offer, it is important to understand Patricia’s value.
The acquisition cost per recoverable ounce in Patricia’s case is encouraging to the shrewd investor. Since 2001 the acquisition cost per recoverable ounce has ranged from Normandy’s takeover of Franco Nevada at $210/oz. to Yamana’s takeover of Desert Sun at $549/oz. The weighted average of 40 acquisition attempts since 2001 is $377/oz.
Patricia’s recoverable gold ounces: (our estimation before the 43-101)
Island Gold: 280,000 ounces
Total Recoverable Ounces: 280,000 ounces
Patricia’s Acquisition Value using $377/oz.: $105,560,000
In Vancouver we are hearing rumblings of others soon to enter the Island Gold property auction.
Hold the line bulls. This is only the beginning of a bidding war for Island Gold.
COMPANY SPECIFIC DISCLOSURE: Our investors group is buying Patricia and currently owns 2.6% of the company.
DISCLOSURE: We do not trade in and out of gold stocks; rather we buy percentages of the company and hold until the company is sold. We seek and buy undervalued non-hedged junior gold producers or near term (under 12 months) producers. We use a price of gold (US $600/oz.) in all of our target price models. The information and opinions in this report is prepared by a private investors group. The reader should assume that our private investors group may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. The opinions, estimates and projections contained in this report are those of a private investors group as of the date of this report and are subject to change without notice. We endeavor to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, we make no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this analysis or its contents. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual investor objectives, should not be construed as advice designed to meet the particular investment needs of any investor.