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Evolve Canadian Aggregate Bond Enhanced Yld Fd ETF V.AGG


Primary Symbol: T.AGG



TSX:AGG - Post by User

Comment by jdn55on Aug 09, 2012 10:14am
196 Views
Post# 20198055

RE: RE: 2 other takeover targets

RE: RE: 2 other takeover targets

I couldn't speculate on who the other two comapnies they're stalking may be without doing a lot more research but they have stated they're looking for producers or those with deposits in the "proven reserves" category. I think it is unlikely AGG may be one of the companies they are looking at as Kobada is still a little too early stage at present. That could change though once we update our resource and move to feasibility.

 

As for SP to get taken out at that's a good question. It would have to be at a lot higher SP than where we're trading at right now though. Based on AGG's PEA if we were in a normal market and leaving Mali politices aside you'd be able to make the case Kobada alone should be worth $1.25 - $1.50 per share. Assuming we get some cash through divestiture of a Ghana property or two, assuming we get to a 2MM deposit that's has lot's of "Blue Sky", assuming that depost economics remain robust with the FS and assuming the Mali political situation settles (which I think it will) you could easily make the case for a $2.50 - $3 SP. My views on this have been consistent for over a year now.

 

With all that stated we are not in normal markets so we will just have to wait and see. One thing I'll bet on is that one way or another Kobada will become an operating mine assuming that the upcoming FS supports the deposit economics originally stated in the PEA and we get to 2MM ozs.

 

The other thing that's evident is that the markets weren't overly enamored with the AVR/EDV deal judging by the SP reaction of both. I would have figured this deal was a win for EDV and AVR SH's got the shaft but as I said the markets aren't rational right now. Long term I think the AVR/EDV deal will be a good for both parties.

 

GLTA

 

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