RE:Shop/Sell Abcourt-Barvue/Vendome Hi lccommoner
I am not sure that my opinions counts anymore on this board now with all those new posters that seems to know everything about mining and how to manage a mining company and how to trade stocks and all the older posters that have acquired experience like me over the years .
My opinion on Barvue is based on many things.
At the last zoom meeting Mr Hinse comment was that Abcourt is focused on gold and one thing at the time so Barvue will have to wait.
In 2014 there was a report 43-101 that was produced with value of $36 for silver and $1.03 for zinc.
Today the value has changed to $26 for silver and $1.23 for zinc .
At the time Mr Filion had commented to me that it would take 2-2.5 years to repay the loan to start the mine.
In 2014 the interest on the loan would have been 9-10% and now it would be 3-4%(my own evaluation).
I consider the Elder mine a labor intensive play and needs most of Mr Hinse time and if not managed properly would not be profitable.
Sleeping Giant mine still has to prove itself.
Discovery and Flordin will also take all the spare time of management.
So for Barvue and Vendome i see a few options.
1: sell for $50m like mentionned if possible in cash.
But what do you do with the $50m Do you go on a spending spree and acquire everything in site
and or give bonus to management and or share buy back or special divident.
2: sell for $50m paid in exchange for shares of the buying co.
3: borrow the $40m and since management will not have the time to manage effectively the Barvue reopening we would need to hire as new crew for Barvue .
4: find a new partner to invest the $40m required to open Barvue and give 50% of the asset.
5 form a new company and put in $2-5m and get a new ceo cfo and let the new team find financing for Barvue.
The shares of the new co can be partially distributed to present shareholders and the rest still owned by Abcourt.
that would give every Abcourt shareolder a stake in the new co and let them decide to increase or decrease their participation.
If ever the new co needs extra cash Abcourt could participate in the new financing.
6: Leave everything as is and wait 3 years for the time available to management to start planning for the opening of Barvue.
MY PREFERED OPTION FOR TODAY IS NO 5
and start dewathering the open pit to show that we are serious in reopening Barvue.
By forming a new co we do not limit our profit to $50m but still have hope to increase Mcap of new co by 4-5 times in the next 5-10 years.
I think Barvue with Vendome has almost as much value as the rest of Abcourt properties and
would need less labor.
I know it is not good for new investors trying to make a quick buck today and then move on to another co to promote.
Fernand