Pan American Silver Corp T.PAAS

Contingent Rights

[seriousinvest]

Btw just to complete my last post. If all the rights are exercised the number of additional shares that would be issued is around 16M. The company has over 210M shares outstanding so the new shares would increase the shares outstanding by around 7%. What sane executive would intentionally defer the receipt of$1Billiom to avoid issuing 16 M shares. BTW the right trade for around $.60 so th comvpany could tender of all of them for something approximating $200M.Wouldn't that be a  more intelligent approach then intentionally deferring $1,000,000,000 of pre- tax profits.

[cashworx83]

This post has been removed in accordance with Community Policy

[Odinson]

So ..... our contingency rights expire before they reach an agreement ........ where does that money go?

[seriousinvest]

What money are you talking about? There is no money involved!

[Odinson]

I don't think I could adequately explain to a concrete block.......... Have a nice day

[gil]

The way I understand it, right now you could sell your rights and get around $0.60 per right. As things go forward and the mine possibly re-opens, your rights will go up in value. You can sell at any time for whatever reason as long as someone is willing to buy. If, however, time goes on and there is no progress on re-opening the mine, the value of each right will go down. If the clock expires

[finnboy]

Very honest and level headed response Gil! Describes just about the entire market.  Glta - finnboy

[seriousinvest]

Excellent analysis. I have been buying the rights because I think the negotiations will lead to a reopening. If that were to happen not only would 1000 rights ($600 current approximate value) be immediately worth approximately 50 shares  (approximately $900(US) but the market price of PAAS would also increase significantly with that large an increase in income. An approximate doubling of Ag

[Odinson]

If, however, time goes on and there is no progress on re-opening the mine, the value of each right will go down. If the clock expires, then your rights are worthless.  THIS is the point that I was trying to make! First of all, there needs to be a desire by management to get the Escobal issue resolved,  Money wise, it is NOT in their best interests to do so because of the cost of "

[seriousinvest]

that's easy. If the management waits until the rights expire in 6 years they will not have earrned any income from the mine during that period. The mine in 6 years (at current depressed Ag prices) will net pretax income of more than $1 Billion. Anyone who would avoid the modest dilution of roughly 7 % and foregoe $1B of profit is not making a decision that is in either jn their best intersts

[Odinson]

They haven't been getting any revenue from Escobal for haw many years now??? A few more ain't going to hurt!

[seriousinvest]

the only appropriate response to that comment is that I have no choice but to ignore any future poss by you

[Odinson]

Glad to see that! I've been ignored by people far better than you! And a lot more intelligent at that!