RE:RE:Centerra and Thompson Creek to tie $1.1bn knot !It is very difficult for me to compare the Centerra / TCM deal to ICG. TC had a fire sale where they basically paid off bond holders; they would have gone bankrupt next year.
TC has 0.4g/ton of gold; but it is mostly a copper mining company. They have a royalty stream on the gold as wellas the copper.
Maybe Canterra wanted to diversify. The 1.1B is for copper as well as gold.
IMO TC should have mothballed years ago and waited for better times. Really, this looks like a sweetheart deal for a group of bondholders.
If Canterra had waited they may have been able to get TC at half this price.
There is no comparison to ICG that I can see.
While I am ranting it also looks to me like the big money investors saw this gold price runup comming. Of course negative interest rates is a clue. Plus, Brexit gives cover for central banks to get back into QE so no telling where the POG goes.