RE:RE:RE:Brio spin offNo problem. I could be totally wrong here though, and Brio might go below 3.25 and stay there for some time. I am reading through the final prospectus and it doesn't look like an exciting company to own - there is potential but a lot of the reserves are in Santa Luz, which won't start up until 2018 and they have gold recovery problems there. The other mines seem to have exploration upside, but that kind of thing is expensive unless they get lucky with a rich vein. Its all too hard to predict - probaby more than anything else it is a bet on the price of gold and the Brazilian currency. If the gold outlook stays pessimistic and/or the Real rises more, then Brio won't go up I suspect. The company will start without debt but will have a line of credit facility that they will need for capex. Opex will be ok as long as gold stays up near current levels. If Brio goes up at all you can bet Yamana will start selling, so that is the best scenario for us. I am rethinking exercising the rights or buying more and won't decide until mid-December...
Americans except for institutional players can't exercise the rights, and Yamana seems to have strong US ownership, so possibly the US holders will dump all their rights and they may go down to pennies...something to watch for.
I don't know anything about the tax implications of the divvie in kind for Canadians...can anyone out there comment?