RE:WRN buyout valueKinross is taking a gamble that they can "overpay" now to avoid getting into an ever more heated bidding war if the resource at GB's Dixie project is everything they believe it is cracked up to be.
Yes, GB is a gold project. Casino is a dual gold/copper project. But, regardless of how you look at Casino the primary metal in your opinion will be the offset credits. I look at Casino as a gold project with copper offsets, as would NEM. RIO looks at Casino as a copper project with gold offsets.
Which metal do you think will provide higher returns in the future? My money is on gold and that is one reason why I consider Casino a gold project. I don't invest in copper projects per se, the only reason I even have copper exposure in my portfolio is because some of the juniors do have copper exposure as cost offsets in their mineral mix.
I see three possible outcomes right now:
1) RIO meets the BoD's price tag and acquires the entire project.
2) NEM outbids RIO and acquires the entire project.
3) RIO and NEM go in on a joint venture and we shareholders are effectively bought out by both majors and end up becoming NEM and RIO shareholders.
Option 2 provides the highest upside of course, let's see what happens......