Post by
askQuestions1 on Nov 01, 2023 2:47pm
Why would SCR buy ATH? Makes no sense at all.
SCR has 35 years of reserves at a $35 breakeven. ATH breakeven is $70. You would have to be insane to want to buy ATH. Weakerns you finacially permanently. Just grow your production 8% per year at a very low breakeven cost with low declines. That is their best option.
If SCR buys anything now it will be a private companies asset as those assets are way cheaper than public companies assets and they just can't borrow money. Private companies are best if they went public and to ever realize a proper retun on their assets they would need shares to ride the valuation higher.