Post by
andre171 on Nov 02, 2024 5:04am
Dilution 60% for CDE shareholders
As Taylor Dart points out in his latest publication, the question is whether or not the acquisition of Silvercrest is positive for CDE shareholders. One must legitimately wonder about this 50-60% dilution for a 25% production increase that will only last 6 years. It's all very well to assume that the mine's lifespan could be extended, but this remains hypothetical. To cut a long story short, it's deplorable that we're DEFINITELY diluting more than 2 times as much as we are increasing production for ONLY 6 SMALL YEARS. Next Thursday, at the conference following the publication of the quarterly results, we can already assume that management will take refuge in a duty of discretion until the operation is ratified, or will present it to us idyllically without being contradicted by questions from any complacent analysts who may be present. Obviously, my doubts about the acquisition of Silvercrest for +- 1500M would vanish if the price of silver reached $50 in the short term, but this is far from being a sure thing and it would be very unreasonable to take refuge behind this risky hypothetical...
Comment by
666999 on Nov 06, 2024 7:34am
SIL has $ 160 M cash, its low cost producer and has a lot of property for exploration, so 3 things that are important and you did not include in takeover, plus drill results coming and increasing resource, why is SIL mkt cap so big, because mine has delivered, and has great grades, all this things that SIL has Coeur needs, simple, and deal proofs that
Comment by
666999 on Nov 07, 2024 2:16pm
Deal.is good for both companies, yes SIL.mkt cap is huge, but investors revard great mgmt, and vice versa, simple