OTCQX:LMCNF - Post by User
Comment by
peregrine3on Aug 28, 2019 11:17am
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Post# 30074776
RE:Leagold buyout
RE:Leagold buyoutThere is NO way Yamana will buy them - you've got to kidding woolco..
Yamana has an enormous debt load and they've been desperately selling assets to pay down this debt - as of July, $1 billion (no typo) is still o/s and they are paying something like $300 million per year in interest expense, G&A, etc. - that company grew way to quickly through acquisitions in the past and management grossly overpaid themselves despite not having created any shareholder value. On top of all this, they decided to double their dividend in April 2019 ???
If anything, they'll need to monetize their LMC investment - soon.
Plus, they are a friendly on the LMC board - as Temple alluded, look for them to sell through a secondary offering - maybe in the $3-5 range.
There's a much stronger argument for them to sell LMC..