RE:RE:RE:RE:Guistra should Hold FG but sell Allegiant?Faced with the proliferation of mining projects, the opposition is organizing itself 15 September 2017 /
Hlne Ferrarini (Reporterre) From the above article (
my underlining):
“In Guyana, the public inquiry into the Montagne d'or ended in August. Following the referral of France nature environment, the National Commission for Public Debate announced on 6 September
a public debate in Guyana on the project . It will take place from March to June 2018. It is a first victory for the collective of question, because
it will allow to prolong the public debate and to offer a
new media space to the opposition to the project.”
So, apparently the FG public debate now goes into June 2018. I could not translate the supporting document so I am guessing that the decision will be made after the closure of the debate. Will that be 1 week, 1 month, 1 year? The opposition is lining up and if I were them should the decision go against, I (if I had deep pockets) would then step into the legal arena. How long would French courts take to arrange hearing date(s), produce a decision, and then listen to appeals? This is why NG talks about 2022 first pour. Therefore, as NG would you make an offer (in 6-12 months) directly to CBGDF shareholders knowing they are faced with this frustrating process? I fear what in the long term (2021-2) may have become a CBGDF SP of several dollars will now go for well under one. As a long term investor I am putting my CBGDF shares away and will vote no, but I understand anyone who wants to take their gains and invest elsewhere.
I think this long term stagnation of CBGDF will, however, drive Guistra, Cordex (Wallace) either to sell Allegiant immediately, if there is a buyer prepared to bite on present results and future possibilities; specifically, offering a SP value ($2-3) that would take several years to achieve via drilling (we know that data is there that we have not yet seen to which the big boys will get access before the spinoff). Will IAG, NM, Barrick or Kinross bite?
CBGDF IPO’d I believe in 2006 at a SP of C0.85. The SP has gone nowhere in 11 years and Guistra knows that if he is timid there are now other projects in safe areas like Nevada, Utah, Canada etc., that will likely attract the retail and commercial investment along with the JV’s and buyouts. While the CBGDF situation is not his fault he will, however, bear the investment communities disappointment. Nor, will his Nevada President Wallace accept a drifting along at Eastside and Bolo if there is no sale of Allegiant. Wallace will make his money not through CBGDF shares or I suspect Allegiant, but through the royalty agreements he has on the Cordex holdings; that means buyout mines pouring, or buyouts of his royalty streams. We all hope we are in the throes of a gold bull market but gold exploration is unforgiving and those small explorers who are not at the forefront of dynamic resource creation and sell side publicity will not reap the rewards. For Guistra CBGDF FG might be forgiven, Allegiant will not!