RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:No blood bath?! Where are the sellers and shortest?Trade
A couple of things. A slow appreciation in gold prices would sure help the cause for P. Even now at 1295 gold there should be a decent boost in reserves this year after that new math ore reserve massacre method at 1200 gold last year, and that may be a problem. Maybe they plan on a revised method to lower ore reserves based on certain veins at san dimas mine being made of jack cheese theory, just kidding, sort of. As a negotiating tactic I understand painting the worst picture possible is a good strategy. They poured it on thick me thinks.
As far as san dimas mine being worth 250 million, I say yes and no depending on some conditions. I believe if P thinks the stream and tax issue are manageable and resolved soon at 1250 gold the mine is in fact is worth 250 million. I think P may take this approach to value if mine isnt officially or seriously for sale. Listening to offers and other talking points about san dimas may amount to nothing serious, smoke and not much else. If san dimas becomes officially for sale and to be sold within a year I think the value must be impaired nearer to offer price. I think that is how its supposed to work on valuing assets. So the way I see it the mine really is worth close to 250 million because offers reflect that value or its not exactly on the sale block now.
Im not sure W makes any stream deal with P unless mexico buys in and settles at same time. Just seems like a recipe for disaster. With that said I think it will get sorted out next year with good terms for all imo. We will see.