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Midway Gold Corp V.MDW



TSXV:MDW - Post by User

Comment by benandemmibooon May 23, 2015 9:46am
169 Views
Post# 23757149

RE:Holding and Adding....

RE:Holding and Adding....Am I correct in thinking the debt to Hale is to be paid in gold (ie 80000 ounces). If so, some sort of agreement between them and Barrick could be made, thus allowing Barrick to minimize the actual costs of paying off Midway's debt (because ABX is a low cost producer), and then Barrick could buy the remaining properties for a lowball price that at very least would double or triple the current PPS. Barrick has been far from a buyer in this market, but assume it can happen as ABX shareholders would see the value.

If not Barrick, then I have to think Midway has received some offers that would at least be good to the new-timer shareholders who invested after Midway's crash, and it all depends on whether any of the offers also make Midway mgmt rich. I assume Midway will accept the offer that makes the mgmt most rich. To that end, any acquisition offer that includes an allowance for managers to retain their positions would likely be improved. An offer that's good for (new) shareholders, but bad for mgmt, won't be approved. Long-term shareholders are hurt no matter the situation, as the properties are simply not as good as originally projected. 

30 cents is not the short-term target IMO, but among the best-case scenarios in current market. But at 19 million market cap (less than that accorded the bankrupt ANV), it makes it not too risky (the perennially overvalued PGLC is valued at Midway market cap plus Midway debt, and their property still seems inferior to Midway's Pan), and a likely double or triple... so this was not meant to be a bearish post. It was an effort to convince me to be a more aggressive buyer in the future.  


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