RE:RE:I don't get it? I have a handful of names like this one in west Africa - all explorers with proven oz's in the ground (CDV, SWA), or near producers (ORE) and even some producing already ( HUMRF). All have pretty much been overlooked in the PoG run up since July ( the exception maybe Orezone which has had a partial pop so far)
While large players like Barrick could go on a buying spree, the truth is they are divesting of all but their biggest properties ( following the Rangold merger)
Mid tiers operating in west Africa are natural potential buyers, however they appear to be waiting for their debt to be paid down, or for their cash coffers to fill up, or for their existing mines to start running out of ounces, or for their existing pipeline of new mines, or existing unexplored properties to dry up. Who wants to be the next Rangold?
The list includes companies like Endeavour, B2Gold, Semafo, Teranga, Goldfields, etc. Also in the market may be several Chinese acquirers.
As gold prices continue to rise, the ROI and value in these potential targets become even more compelling. And as gold prices rise so does the ability of the mid-tiers to acquire ( ie the value of their currency rises)
Companies with a track record of building new mines and dealing with locals ( eg resettlement's) and Governments, have the upper hand.
I expect some of these targets to eventually fetch multiples of 5 to 10 times their current share price.
It may take a serious gold price rally - which most experts agree will happen over the next few years.
In the case of CDV the value must be so compelling as to make the acquirer want to take the risk and develop the infrastructure around the potential new mine. It's a bit surprising that the ROI is not there for someone to take these relatively easy ( no need to explore for) ounces. ....yet !
MM