RE:RE:RE:RE:RE:RE:What’s the consensus here?Ridgeback wrote: Benedictus.
We'll see in a few more days or hours how well conceived this merger may be received by shareholders and analysts. I don't think this merger with CXB was just coincidence last word on that.
So bottom line don't count the CBX Golden eggs until the rooster land in the barnyard?
Here's my outlook. CXB has a large share issue not sure what this merger will do to that share count or what analyst may think?
I also would expect a reverse share split somewhere down the road at least 10-1 or more?
I don't expect CXB to remain independent and also be subject of a merger.
As far as the Marathon Mine Build it would appear everything has been on track looking at past site visits and reports from analysts and well taken care of including engineering and Marathon management had the mind set to complete the project not the mind set to finance independently before looking at better offers nearing completion.
Last word before the funeral.
We'll have to see about a r/s. The merged company will have 750M o/s. By comparison, peers seem to range between 200 - 400M, so perhaps a 2 or 3:1. Ideally 200 - 250M o/s, plenty for ample daily liquidity.
In terms of an inevitable buyout, that's the reason I bought CXB. I was fortunate enough to hold Kirkland Lake prior to the Newmarket merger. I held post merger and saw a very good return and yet was still quite short-sighted and left a lot more on the table. I expect the CXB team to replicate their Nicaraguan game plan with the valentine resource and make it the flagship to alter the market perception of the company, achieving a valuation re-rate, over time. But first things first...over the next 18 months, they must prove they can achieve first production on time/budget.