RE:RE:No blood bath?! Where are the sellers and shortest?Curv
I think the big shorting occured as soon as the convertable debt was issued. 75 million in convertible debt at 6.60 almost makes for a risk free short hedge. Toxic financing at its finest. They have all covered by now imo.
I wonder how much it would cost Primero for Wheaton to move closer to original stream deal they had with P that promised first 3.5 million shares of silver to Wheaton and 50% of the amount above 3.5 million oz. I wonder if W getting 50 million P shares and adding the surrounding san dimas concessions to life of mine deal would do the trick to lower threshold to say 4 million. This assumes P can actually find more gold and silver than they let on to at the moment and mexico is amenable to a deal.
This situation poses a dilemma for W. Do they make the best deal with P or another miner to offset any longer term stream revenue lost which now appears to be about 15 million a year. Any new miner will want a big stream reduction to offset a huge potential tax smack down. That may be a non starter for Wheaton. Do they make a deal with P just giving them enough to turn a decent profit always knowing they can force a new deal if P promises fizzle? Does W see an increase in value of new shares acquired and a asset with potentially a much longer life coupled with a miner with new
incentive to dig worth traveling this path?
Another incentive for W to make a deal with P could be Mexico wanting P to stay on site. It seems very odd mexico is helping out P now with big chunks of Vat money. Mexico supposedly playing hardball on taxes but releasing a vat tax refund lifeline for P. Strange things indeed. We will see.