RE:RE:RE:RE:RE:The Search for Saxony's Forgotten Silver I think Excellon is focusing on Silver City for good reasons. It has a favorable gov't for mining, is safe, does not have the risks and corruption as Mexico which have plagued Excellon over the years, has local academic/scientific support, a history of silver mining and deposits and gives Excellon a first-mover advantage. The only question is how to pay for its exploration. This brings me back to last months CEO interview link below. Although primarily focused on Silver City, Excellon's CEO stated diversification into Otis Gold/Kilgore was an effective strategy at the time but is not today and that it was "a very accretive transaction for us". Here's what Seeking Alpha stated when the deal was announced; "while investors could argue that Excellon Resources stole Otis Gold at a price per ounce paid of US$15.12/oz, there's no clear path to how this deal is accretive to Excellon Resources". It is Interesting that Excellon's CEO used the word "accretive" now that Excellon has gone on record to "unlock the value of its assets" pointing the finger at Otis Gold/Kilgore. Seeking Alpha also stated; "Otis Gold was picked up by Excellon Resources at an enterprise value per ounce that was less than 20% average paid for the past five takeovers in the space", "we can conclude that the enterprise value per ounce should have come in at half of the median paid, which was US$63.79 /oz". That gave Otis Gold/Kilgore an estimated value of US$31.9 million at that time, US$39 million current value with the increase in gold prices. So "unlocking the value" of Otis Gold/Kilgore could bring in enough capital to fund exploration at Silver City and its other properties, pay off its debt and have of money left over for a stock buy back program for example which if already in place may have stopped the attacks on its stock price, all game changers. These actions should also gain the attention of investors, create stock buying interest and eliminate the issues which have been plaguing the company since Excellon hired its current CEO. IMO a big win across the board and a no brainer.
First-mover advantage definition
"The first-mover advantage describes companies that are first to market, which gives them a competitive advantage over other companies, resources, or technologies that follow. Brand leadership and loyalty are usually awarded to first movers".
| | It was a rough week in the Gold Juniors Index (), and Otis Gold (OTCPK:OGLDF) was not spared either, despite being the first acquisition in the junior gold space for 2020.We got news on Monday ... seekingalpha.com |
https://www.youtube.com/watch?v=7EiKsxxfkp0 | | In this episode, we chat to Brendan Cahill, President & CEO of Excellon Resources who is a TSX listed Canadian mining company that is in full production with... www.youtube.com |