The reason the stock tanked today Some confusion here no doubt---I can shed some light:
Endeavour Mining conrols at a 40% interest in the Finkolo Gold Project in Mali. Today they announced they
were selling that 40% take to Resolute Mining (the 60% holder) for $20M cash. It's a non-core asset for
Endeavour and they need the cash obviously. This is a good way to do it without diluting shareholders. The market is running to town with this despite the comparable being off in at least a few ways.
1. sure they are both in Mali, but way more blue sky potential from this point onward at Sriyaba than at Finkolo. At Finkolo this is Resolute consolidating a project that's in later stages--Resolute is the operator. At Sriyaba they are just scratching the surface.
2. This is a core asset for MXI and the tightly held shares will not be parted with "to raise some cash" as Endeavour just did--this is akin to your neighbour selling their house on the cheap because they need cash or b/c they're moving etc.--this does not really affect the value of your house if you evaluate the situation objectively--there is nothing "wrong" with the house.
Another key point here--by all means bail now if you'd like, but MXI is sitting on $12M in cash with $6M to get spent this yr drilling (along with $6M from Iamgold). Mkt cap is roughly $28M--so if you wanted to bail, the time to do it was in the low 30s.
The insiders/tightly held shares are not going anywhere for less than 70 cents, and Iamgold will finance MXI themselves if they have to. Worst case scenario on the downside to me looks like 17-20 cents.