RE: News-Crocodile Gold Provides Outlook for 2012 Brutal cash cost per ounce, but if POG holds (and it will, given the US announcement of low interest rates until 2014), they're still going to make over $30M profit this year. Infrastructure improvements and mining of ore closer to mill should reduce costs further. If Pine Creek comes through next month, this will be another positive catalyst. Personally, I can't see surrendering shares to Luxor at 0.62, when the book value is 0.76 and there's been a number of postive developments in the past month.
What happens if the bid for control fails? Presumably Luxor is thinking that this is a good deal for them and that the chances of making money are good. Would they walk away, surrendering their shares at less than the offer (0.58 today) and driving the SP down into the 40s or even 30s again? Possibly, but unlikely; they see the value. The only negative takeaway I get is the fact that CRK directors think this deal is acceptable to shareholders; I'm wondering how much palm greasing went on to bring them to that conclusion?