TSX:LSG.DB - Post by User
Post by
JRaffleson Feb 05, 2016 5:47am
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Post# 24527250
Tahoe bid rumours
Tahoe bid rumoursIf there were to be a paper bid by Tahoe Resources for LSG, then I would not hold Tahoe paper, for headline reasons which include the following:-
- The Tahoe Balance sheet at Sep 2015 includes $1.8bn of mining assets, which may be of questionable value in SA.
- Tahoe cash amounts to $110bn, but this is offset by accounts payable and secured debt of $166bn = negative $56bn.
- About $66bn of Tahoe cash resulted from a merger with Rio Alto.
- I reasearch Rio Alto in 2013 and came to the conclusion that its mineral rights were dependant on the political whims in the location of its mining assets.
- Tahoe's Kevin McArthur, together with Ian Telfer merged their former Glamis operations with McEwen's Goldcorp.
- G traded at $40 before the merger , but the SP collpsed to about $30 when the Glamis merger strike price was legal complete. McEwen sought legal advice as there appeared to be SP management against the former G shareholders.
- Telfer and McArthur expanded the merged G, but the G shareholders lost value in the empire building. It could be that McArthur could again seek a corporate growth by aquisition, where shareholders may not participate to the same extent.
- I bought LSG primarily for territorial security, there is plenty of risk in mining, without adding political uncertainties.