La Mancha Resources Inc LACHF

RE: RE: A Case of Consistency

[DetVicMackey]

Thanks for the nice comments Abe. For the past several months, I have been too busy and really miss observing the boards on a daily basis. I always look forward to reading your sound opinions.

 

I didn't consider the impact Areva has had on the stock price until now. The average daily volume probably confirms your thinking in that interest from institutions has been low. However, I think that this provides the small investors an opportunity to pick up cheaper shares with the institutions failing to close the value gap on a timely basis. While it's usually preferable to have a diversified group of shareholders rather than one controlling party, I'm a big believer in putting value before politics. Areva has not impeded on the company's ability to perform so that has me less worried.  

 

Areva's plan to divest its 63% stake is actually new news to me. On one hand it makes LMA a legit takeover candidate, but minority shareholders may not get the best price as you have noted. In either case, this may further add to the upside price momentum. VMS is currently about half the size of Tasiast on a gold equivalent basis. The BoD have quite a job to do on the negotiations front having to deal with possibly increasing La Mancha's interest in VMS and potential joint ventures. I can only hope LMA can make like Red Back Mining and get gobbled up by a senior at much higher prices.