RE:RE:T-Mac NSR royalty and debt put a lid on NAVI sold all my holdings in Feb because I was thinking a full blown 80's deflation was in the cards. I used to own Guy for about 4 months but sold on a pop around 80 cents cant recall the date. I believe the Chinese are overpaying for GUY because the data cant be trusted; management has been...unreliable, to stay polite. But it's very telling where gold price is heading when Zijin and Shandong are agressively pursuing large deposits in the Americas.( CNL, TMR, GUY ). Now with TMAC the chinese are underpaying for it but they have to take the debt and the NSR so I believe its somewhat fair. There won't be any offers from the senior miners, Agnico could do a stock-cash offer, there is only Pretium left as a large operating canadian deposit with a sizeable land-package...so I dont rule out Agnico yet, they outbid Goldcorp on the Malarctic mine so...
15Stanmore wrote: Hello Nin777,
I agree too many investors are focused on short term gains, and do not have the patience to take the longer term view, which is essential for developing a resource such as the one currently owned by TMAC. I believe the Chinese investor is more prepared to work for the longer term, which is clearly what TMAC needs right now.
Having also followed the Guyana Goldfields takeover, I think it is instructive that a $0.60 per share offer on April 27, in the middle of the Covid 19 stock price debacle, was soon followed by a competitive offer on May 11th which in turn saw the current Chinese bid of $1.85. Having had SD Gold put a line in the sand at $1.75, and with the most recent quarterly numbers now in hand, perhaps there is another buyer interested in stepping in to acquire the TMAC sunk costs and geological IP at a bargin price. As we know, any such competitive bidder must have the additional deep pocketed capital to properly optimize the production and hence return from this long term asset. Not many of these investors around, and with most of them from China, these are not likely to bid against the offer already on the table.
In any event, the market at $1.51 - $1.55 stills seems to offer smaller investors a chance to buy an option on the potential of a competitive offer with a 20 cents gain if no such offer appears and the current deal gets consumated, which I believe it will. Guy.T at $1.75 offers only a 10 cent gain, and little likelihood of any other offers. For those that bought at $0.60 around the first offer are now seeing a very nice gain to teh $1.75 level where a current sale makes sense rather than waiting for $1.85 in the fall if the deal gets through all the necessary approvals.
I did not jump in on the Guy first offer, and instead used my cash reserves to participate in the TMR option. While some uncertainty still exists with this trade, it appears less than the broad market uncertainty still in play from Covid 19, so I am happier having gone long the TMR option.
I hope other readers of this board might share their opinions so my posts do not look like I am dominating the discussion. Jump in , the water is fine and no sharks anywhere!
Cheers,
S.