RE:RE:RE:If the stock price gets to 70 cents Canadian As you know we have our purchased valuation by Edison which came in at $3.60 or so, but there is always some discount to be expected for a cash payout.
The four big factors: long term metals prices (hello, wake up world there is a copper shortage looming), discount interest factor ... we have massive downstream cash flows so NPV is highly sensitive to the selection of long term interest rates - again hello inverted yield curve but in the mining business they seem to be extremely conservative and select aggressive discounts - likely because they are looking for cushions against metal market softness. One two many recessions in your career and they can't see beyond the fear of temporary negative cash flow and insufficient capitalization. Then market price pre-offer ... nice to see us rising today but we need a new floor much higher ... towards $2, which, given our assets and an implied market cap of still less than $350 million US even at that, is peanuts to secure Lifts1 and 2, Heruga, and all the prospective targets. Finally the big wild card is are there drilling targets that could materially change the overall value of the JV or Shivee West, and realistically is there time to drill much more? (So many wasted years!).
Anyway, given where our implied market cap is today, every reason to expect a very good gain from here ... but to what and how fair in the final analysis ... can't tell.
One aspect that has always been pretty strange is that ETG wasn't cleaned up many years ago when it might have gone for a lot less than today's implied market valuation. That always gave me additional belief there was upside that was being capped and preserved for the post-TRQ world.
Hope isn't a plan but there are reasons to be optimistic about several good lifts from here. Wouldn't hurt if the metals markets lit a fire under copper either!
cg