Production or takeover ?We will know by june when the feasibility study is out. ADM has roughly 10mil oz gold but with recovery of ~75% thats more like 7.5mil oz. This is still very good - enough to produce 300,000oz per year for 25 years. Lets say the production costs are really high like $700. If gold keeps around $900 that would mean $60mil free cash flow annually. I expect with all the $trillions being currently printed the inflation will push gold to around $1500 in 2 years. I think ADM will be better off if they keep the deposit, dilute the stock further to finance the mining operations. Even if they have to dilute to 150mil outstanding shares and produce 300k oz annually, ADM will be a rock solid company.
Art27