RE:Per ounce valuation. Rose coloured glasses ?nuggetin,
how strong a position do we have to enforce this approach to prospective buyers even if the RE confirms our past successes
If we have the goods, then we should have an incredibly strong position. If AZX accepts a buyout price that significantly undervalues its real assets, then either the M&A market is much softer then it seems, or the BoD failed in its duties to maximize shareholder value.
Company A offers $50 million to buy AZX out, then the BoD would only have to find a Company B to offer $75 million. Once that happens, the AZX can tell company the $50 million is no good and they must increase their offer. This bidding could go on until the best offer is not countered. I don't want to dismiss the risk, but a company lowballing valuable assets in a strong M&A market should not be a top concern. For me, I need to see the resource estimate and the terms of the offer before deciding if it's a good deal.
If this is a merger with a similarly-sized and undervalued company, then a lower price should be more acceptable to AZX investors. We are not gaining a short-term premium, but we are not surrendering our longer-term upside either. Since too many factors and other details exist that impact the potential value of a prospective deal, then I think it's impossible to say what is a *good* price until all relevant information is released.
Everyone seems intent on gaslighting themselves into misery by trying to read financial tea leaves from a legal new release. Whatever happens will happen, but we should not be so confident we can predict the future.
NP
Disclaimer: I own AZX, this is not financial advice, do your own DD