GREY:NRRMF - Post by User
Post by
bplondonon May 28, 2011 10:18pm
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Post# 18640457
Time Frame
Time FrameWhile it's been frustrating holding and dealing with the delays and lack of news, unless I'm misinterpreting some of what I've been reading here on the JV, PAA should have a pretty strong incentive to get this deal done at least before the end of the year, at least if you believe that silver prices will remain at around the current spot price or move higher between now and year end.
It would appear from the JV agreement that a buyout price would be based on year end spot price; spot price at end of '10 was approximately $25. If one believes that spot silver will remain at least in the $30 oz. area and quite possibly be much higher by end of '11, some pressure must be building on PAA to do a buyout before 2012.
As such, I'm thinking (and hoping) that we are getting close. That being said, I'm thinking a full buyout in the $5-$6 range in the next few months as I think PAA will have risk paying a fair bit more if they let things go into 2012.
If it's more than $6, I'll be ecstatic.