Hi guys,
Warrants?
New kid on the block here. What do you guys think of the warrants? It will just be a matter of time before it hits 1.80 and be in the money. 5 year seems to be an eternity. It's not liquid right now but it's just a matter of time. Their balance is decent/clean right now. Thoughts?
What I think of the company
Management risk is quite low as the entire team almost from minefinders (which was acquired). One could argue it is the first time that greg smith is the ceo. But one cannot undermine the importance of capital markets management skills of a ceo. You can have the top of the line tech guys, but without managing the capital markets/finance front, shareholder value will not grow. Finance is definitely a key skillset of management.
So you got the tech guys from minefinders, who probably build a bunch of mines in mexico before (and probably more complicated mines). and you got the finance guys doing what they need to do in the capital markets. You add those together, it's guaranteed success.
Don't think this is a take over target. I see this more a multi mine company. Once they get this mine online. The comapny will be looking for targets to aquire through cash/shares. and keep repeating. Sounds easier than it is of course. As nowadays, having small capex/good return projects are rare.
We should see a good growth in share price as they develop this mine in 2013-2014. Slowly bringing pieces to the mine and de-risking it further.