RE:RE:Why is OREA so cheap given its gold finds??Interesting that NG's offer to Cardinal Res for their gold project was A0.45, which was then topped by the Chinese Shandong Gold at A0.60. Clearly, a low-ball offer can immediately energize others into entering the small explorer buying fray. CR have recommended taking the offer, but will another bid emerge?
Maybe the Cardinal experience will be a lesson for NG (who have been successful with lowball offers in the past), not to contemplate such an offer for OREA’s 45% with gold at $1700 + per oz already?
Again, this could all come to naught for OREA with a veto of the mining permit in FG. But, if it’s a ‘yes’, you now have OREA which presently gets almost zero sp credit for its ‘imaginary’ 45% (approx. 1.25 mill oz P&P), now looking at approx. US$4 a share (approx. 200 mill shares) in gold value for its BFS oz. (incs., loan $250 mill; AISC, $800). Any buyout should not in this environment be allowed to be based on a 20-day volume weighted share average; especially, if the FG permit is awarded in 2021 and NG/OREA have, therefore, already taken out both the pre value assessment and permit risk, along with providing a cutting edge mine design ready to go by NG (unless they also decide to joint sell out; even better?).
Again, IMHO, OREA demerging the prospective mine from the other (1- 2?) projects, before an offer, or a mine build out, will also allow for a clearer valuation of the mine, enabling more impact on the sp (and potential dividend estimate if OREA goes to first pour).
Would you take US0.30 now or risk for a posiible $1-2 in then next 12 -24 months?
‘The money is in the waiting’ – oft’ attributed to Jesse Livermore, but probably not.
GLTA -
https://twitter.com/EarthsRare