Consideration & fair price Agree with Templetooth and Masterminded. There is nothing more Young can say at this time. If he hypes Massawa as a possibility too much ( “the sizzle”), the price for Massawa goes up ( in Barricks eyes)
Its subtle behind the scenes negotiations that must happen. Patience will be required. The good news is that it’s surplus to Barrick needs, it’s permitted, and TGZ is the logical buyer ( based on mill proximity) . Barrick liklely needs to come down to TGZ ‘s price. Time is on TGZ’s side, especially since it’s share price is rising ( ie it’ll take fewer TGZ shares as consideration for Massawa, several months down the road if the SP continues to rise) . I see TGZ as being in the drivers seat in many ways.
So I disagree with Peter and his Parrots .
The best part is the TGZ already has a 5 year plan to become a mid tier producer ( translation $10 - $15/SH). Massawa is not necessary in order to get there. Shareholders in fact should be careful what they wish for as far as Massawa goes. With it will come the potential for massive new debt, dilution cash outflows and potential headaches and growing pains. Not saying it wouldn’t be a great add, but it may defer real profitability and cash flow as the Co. tries to build out 3 instead of two new mines all at once.
I still have a decent position in TGZ. Will consider adding again after we get to the end of this consolidation phase in gold.
MM