RE:Probably be over $2 currently If you simply removed the Covid 19 market decline impact on the stock price, this would not be trading at $1.50. Add to this adjustment the appreciation in the market price for gold, and yes, this stock would be/should be trading hands at a much higher fair value.
It was clear that the SD Gold purchasers were quite interested and willing to bid, pre-Covid 19, something between $2 to $3 per share, and would have counted themselves blessed to have acquired this asset, into which billions of dollars have been already sunk, at that bargin basement price.
In my opinion, the only factor that the Investment Review folks can reasonably object to is the price that is being presented to existing shareholders, including the 20 plus percent who did not vote to accept the $1.75 offer. Unfortunately, the review process does not afford the examination board the opportunity to deem the price inappropriate, and to require the buyer to pay existing investors a more reasonable buy out price. They can say no on security or strategic interest grounds (none of which actually exist) but not on the fact the purchase price is too low and does in no way reflect "Fair Value".
I reiterate my call that this deal will go through at $1.75. Any reasonable competing offer by a non-Chinese bidder would simply be matched by SD Gold under the terms of the currently accepted and all but approved bid. This provides, in my opinion, zero incentive for any other interested buyer to invest in the upfront due diligence required to present a qualifying competitive offer, so I do not believe any will be forthcoming at this late stage in the game.
Cheers,
S