Marathon Gold Corp T.MOZ

Comments from a Gold Silver Expert

[Ridgeback]

Calibre Mining acquires Marathon Gold for 32% premium. They are paying $45 per oz in one of the best mining locations in the world! A stunning discount. It's worth at least $300 per oz. This happens over and over.

The slippery slope of greed. This was not done in the interest of shareholders. Deals like this never are. They are always done in the interest of mgt and board. Marathon had an excellent mine in an excellent location. It was going to be worth billions at higher gold prices. Calibre is a solid company, but it has location risk, which impacts its FCF multiple (currently a 4).

Marathon was likely to get a huge FCF multiple premium for its location over the next 10 years. Thus, mgt saddled shareholders with that location risk, and reduced their upside potential. The bottom line is this. Marathon was not sold at a premium. It was sold at a discount (a huge discount).

Forget about the current gold price. Forget about the current market price for gold in the ground. This is a long-life mine. Gold prices are going higher. This company is clearly worth $1B or $1.5B, when you project out the FCF over the next 10 years.

Calibre has to be extremely excited to steal it. I guarantee you when this deal was done they were giddy. Even if they paid $500M, they would have been happy. They paid about half that. A fair price would have been $300 per oz. Which would have been a $1.5B valuation. They paid $45 an oz. That's almost criminal.

[BGraham2]

Ridge - what is the name of the gold/ silver expert quoted in your post?

[brianjames]

Gold taking off today Over 2,040 as I write this  BJ

[Ridgeback]

His coment was on Seeking Alpha Don Durrett. His focus is on gold and silver. To be clear I don't follow him just surfing today and that article showed up. As for the long term of the merger I do expect upside. Do I think the merger was fair. Most often shareholders don't think so,,, been there before but never this disapointed by the events leading up to this mess with a clause that

[Specific]

"what conclusions should we come to?" it's been stated several times......pretty bloody disgustful management is all i can say glad to get the hell out of moz and into MUCH better management with cxb too bad Walford stepped down to let manson "give it to long time shareholder by having to pick up the soap"

[JayBanks]

Let's be honest with our selves for just a second, we all knew the price dip was a prime opportunity for a take out asking for a take out, many on this board mentioned and discussed as likely in the next 12 months and even more so as the price bottomed, we all knew it was possible/likely... if the share price is trading at sub 70 cents and the chart is moving downward, would you pay over a

[DaveinNL8]

 "I'd say $3-5 in the next 2-5 years is very real possibility with the addition of the MOZ asset..." Now if we can just put off the sixth mass extinction we should be laughing!

[BGraham2]

Good one DaveinNL8, good one!  Enlighten us with details of the five previous ones please.

[AlwaysLong683]

As mentioned in a previous post of mine, Manson all but admitted they were going to have do another equity raise in MOZ's PR dated Nov. 13 announcing the deal: "Through this Transaction, Valentine will be fully funded to production without additional debt, royalties, or shareholder equity. The combined company will have three high quality, cash flowing gold assets, a strong balance sheet

[Ridgeback]

Jay. I have done much trading to bring my averages down to around 76 cents and $1.14 and I don't care much for the Calibre takeover which yes I am likely to see some gains but take no pleasure in seeing a great mine built in NFLD under these terms. I guess they thought correctly ,most of us retail holders were as dumb as they come and could just walk in thanks to MOZ management who took the

[JayBanks]

No disrespect taken. I care little about the mine, or CXB for that matter. I jumped in as I seen an opportunity to make good money, fairly quickly and somewhat limited downside risk. I am the same person that jumped on here in the mid 80s when people where trying to figure out why it wasn't trading over a dollar when everyone was ignoring the issues that still had to be dealt with, namely

[Ridgeback]

Agree with you Jay. I don't trust South America and they way business can change. What CXB does in  Nicaragua has done well however they needed to reduce known risk. I'm not the Rick Rule type of risk taker in countries like the Congo. First hand experince in S.A.. As for the future, my list is made up with what I expect to do better as metal prices appear to be moving to the

[stockwatcher7]

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