RE:RE:Long haltGlencore carried out drillings on the property only 2 years ago, but they have not made the results public:
https://thegaspespec.com/wp-content/uploads/2019/11/Spec-November-20-2019.pdf Did they conclude that it was not worth reopening the mine? If it’s the case, they will get 33% of PP for nothing. Glencore’s geologists and financial experts are among the best. Maybe Glencore found something economically viable and Jeff Hussey negotiated a steal…? lol
The quote from Segal of Glencore in this article is interesting: “Our geologists want data. The geologists are people that are super optimistic. When the data falls into the hands of the economic decision-makers though, the story is different,”
Before throwing away all this cash, I hope OM hired professionals that made an economic assessment of this project and took part in the negotiations. Obviously, this was not done with PP, they spent $100M which only gave shareholders a $70M value. The current share price is lower than what it was with Bowmore. Will this deal be a winner or will it be a repeat of PP only worse? They both have the same business model: you take an old mine that closed and think you can do better than these huge corporations. The question is how many shares will they have to issue to fund this project. If they miss their bet, it’s going to end up with a consolidation of shares... They gave away our properties to Brunswick to avoid dilution but they do the opposite here. Forget the takeover of OM now that we have two properties.
On a positive note, since Glencore will own so many shares of OM, they will force the management to take decisions to move the stock price. It’s been steady at 40 cents for the past 2 years while all the other mining stocks have jumped. I know Glencore pretty well and that’s what they’ll do.