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Generation Mining Ltd T.GENM

Alternate Symbol(s):  GENMF

Generation Mining Limited is a Canada-based exploration and development company. The Company's focus is on the development of the Marathon Project, a large undeveloped palladium-copper deposit in Northwestern Ontario. The Marathon Project is 100% owned by Generation PGM Inc. (Generation PGM), a wholly owned subsidiary of the Company. The Marathon Project is located along the Trans-Canada Highway in Northwestern Ontario and covers a land package of approximately 22,000 hectares. The Marathon Project is estimated to produce about 2,122,000 ounces of palladium, 517 million pounds (lbs) of copper, 485,000 ounces of platinum, 158,000 ounces of gold, and 3,156,000 ounces of silver.


TSX:GENM - Post by User

Comment by oilsydon Apr 13, 2021 11:51pm
100 Views
Post# 32990754

RE:RE:Sibanye "back in" thought experiment

RE:RE:Sibanye "back in" thought experimentMarcR, your numbers are also misleading.  I have laid out these numbers before.

If  they buy the company, they would have to pay a considerable premium because shareholders know the value of this company.  Let's say closer to 300 million dollars.  None of that money comes back to them because the shareholders walk away with the cash and no responsibility for funding the mine. Once they have paid that, they still need to pay 665 million dollars for the mine and devote their time to it as well.  So nearly a billion dollars to own and run this mine.

If they buy half the company, they will pay 200 million for the priviledge and then pay 330 million more for their share of the mine.  That's about 530 million dollars.

There is some economic advantage in buying out the company vs paying for a 50% share, but you can see that there is not a huge difference in terms of rate of return on their invesment.

Hope that clears things up.

Oilsyd
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