RE:RE:RE:RE:RE:RE:RE:Orvana undervalued
Thales42 wrote: Nergy, I share your long term prospect for Orvana. My only worry is that at some point in not that distant future the majority owner might have a change of heart and decides to go private. The later in the new inflation-driven commodity cycle, such decision is taken, the better for us
Of course, that’s a risk, but I consider that risk small. We need to remember that Fabulosa gave away the Taguas property basically for free (NSR excluded).
Orvana will spend 20-30 million on development in the 2020-2023 time frame to show the true potential. If they wanted to steal the whole company for peanuts, why would they include Taguas to the company asset base just to save let’s say 20 million on development?
My main theory is that they want to paint the pig for a future asset base sale around the 2025 time frame when Orvana probably shines just like the gold bars they are holding in stock. They don’t care a sh*t about what the market values the company between now and then, but I think they want at least 10CAD/share from any potential future acquirer.
Just my 5 cents