GREY:HRIVF - Post by User
Post by
metalmaniakon Jan 26, 2009 11:00am
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Post# 15728729
Severstal would be nuts to play chicken
Severstal would be nuts to play chickenPower, you must remember that in a tender offer, Severstal cannot vote their shares, so Sprott and the other institutions will never vote for a buyout near these levels, or even at .20-.50. They hold very large cards indeed.
Severstal can walk away, but they would lose 60 mil in cash. If they allow bankruptcy, there would be plenty of suitors willing to pick up the scraps, and I dont think Mordashov would like to lose 60 mil, especially when gold is the only commodity in his empire that is increasing in value.
Kinross just raised a ton of cash and they have entered into partnership with Polyus, Russia's largest producer.
Polimetal just acquired a large silver deposit, very similar in grade to Prognoz.
A tender will not pass, so likely a financing, with Sprott and co, as well as Severstal keeping its stake at 50%.
Great news on Pelagio stake. The HRG block just got very liquid. They own 3,085,200 Detour now which at 8.85 is worth 27 mil canadian. Things are looking good.