Semafo Inc. T.SMF

Should I vote "yes" for the deal?

[riskybznz]

I can’t seem to be able to bring myself to vote yes for the “deal”.

It just seems very strange/suspicious to me that this deal was struck “conveniently” around the 3 week period in March that saw some of the lowest prices Semafo has seen in almost 7 years – not because Semafo is a lousy company, but because of a general stock market crash.

I think that the idea Semafo/Endeavour combining is ok – considering their proximity to each other in West Africa.

It may be a good deal for the Semafo executive, but not so much for the retail shareholders.

These feelings are not based on any mathematical calculations, just my gut telling me that the deal sucks.

Can anyone here convince me that I am wrong and that I should vote “yes”?

[theCurse]

Honestly, it doesn't matter how you vote.  The deal is done.  This has nothing to do with management wanting it - rather the large shareholders....they care about their $$ just as much as you. I'm not sure SMF results were that great.  EDV just had a monster Qtr and just hit a 52week high (30.50 right now) but you must know that based on SMF's price today.  they

[riskybznz]

Thanks for your response... what you say makes sense. It still feels like SMF investors are being short changed though... this deal won't even put me back into the green.

[theCurse]

I really don't know the fairness of it....SMF has had a LONG history of underperforming. I go back to the days when SMF and EET (Etruscan) had a JV mine ~15+ years ago.  Ironically EET was taken over by EDV when the credit crisis killed them - staring EDV's gold business.   I think the larger shareholders saw some light in a dark tunnel with this deal. One huge boost could be

[Dieunis]

This is very strange that the deal was announced in this situation and this date. The 4th quarter 2019 and the 1st quarter 2020 was not bad with considering boungou mine closed and low restart. Last year, without perturbation, the stock price was around 5$ with a gold price of 1300$. Imagine today with 1700$ gold price. The stock price is reflected by the offer. The stock price of many gold

[stockhunter1]

I agree FULLY Dieunis!! The deal was an act of desperation by like minded management. What a disgrace!!! I will also vote no as will all folks with half a grasp on their portfolio. Regards to all SMF shareholders... you should demand more...vote no you will get more!.

[trebor157]

Well it’s a done deal ...we will not lose money.. but lose plenty of leaverage..as gold climbs higher ,,glta cheers 

[theCurse]

Yep 99.7% of the vote by SMF holders.  It was done before the vote. not sure how you lose leverage?  I don't think EDV is roped into any hedging. dividends to start later this year.  i've sold most of my EDV recently (including today) - figuring there will be a pullback in POG despite the rosy POG environment.  maybe it won't happen.  i've been too

[trebor157]

The so called gold experts ...always tell you to purchase junior gold miners and mid miner in order to gain Leaverage !!  As the price of gold increase.:. Just saying...cheers 

[theCurse]

I don't get it.  All producers have leverage to the POG as their costs do not rise as the POG does.  The ones that have less leverage or none at all have hedged some or all of their production. tC