RE:RE:RE:RE:RE:RE:RE:RE:RE:Updated Drilling Results, April13,2022
One of the big issues most are refusing to acknowledge here is the reluctance of any major to make insane buyout deals like the one above, whcih just about bankrupted Kinross. All themajors went crazy at that time and even Rio almost went bankrupt on the backs of the ridiculous buyouts they engaged in and had to be bailed out by the Chinese. Bhp likewise, and you can go on and on. Newmont for example bought out Hope Bay only to write it all off less than 2 years later.
Since that time Majors have been extremely gunshy and refuse to overpay for a property no matter how good. GBR mentioned many times here got a deal whcih many of their sharehodlers felt was way under true value. This is th eworld Sprott and Colin inhabit right now and they have to balance many factors in their decision making, I, for one. am confident they will get a deal which will be the best they can get. Who knows what that number will be, but in the context of the state of mind of almost all majors, it is unlikely they will overpay ever again. Rio Tinto has refused to enter into any buyout for years now which did not deliver shareholder value for Rio Tinto despite being literally floating in cash from iron ore! They will not pay for blue skya anymore, no matter how attractive the target property may appear.