RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: FI >>in the Spring of 2012 the AAB's management decided that the business model is not working for them anymore: junior miners are in a vicious bear market, anybody can get early stage deals on the cheap, hard to generate profits and corresponding management bonuses. They need to wind down AAB but they want their bag of money first
I don't believe that is quite the scenario. From my discussions with mgmt, neither the sale of the royalty nor the Dacha merger was about winding down AAB due to a vicious bear market - but rather the opposite - trying to source capital in an environment where a placement was impossible due to variances between NAV and PPS in order to take advantage of bargain basement pricing in the sector. I'm not saying I like the deal, either deal, nor am I happy with the bonus payments - should be calculated on overall performance - not 20% of realized winner and 0% of unrealized loser.