Galway Resources Ltd V.GWY

Yamana Buys Extorre

[SchiffKnowsBest]

Yamana is paying about $165/ounce for Extorre who has an asset in Argentina.  This is based on about 60% of their 43-101 being indicated, and 40% of it being inferred (total of 2.41 million gold EQUIVALENT oz).  They had an average grade of about 5.5g/tonne.

[Red5Luke]

and keep in mind that $165 is for property in Argentina where they have begun nationalizing properties and put in place other anti-mining laws. 

[oldtimer42]

Good job Schiff, that works out to about $3.20 per share based on the number of GWY shares, if my math is correct. I think the $3+ range is about right for Cali. if we stay realistic. Anything above is a bonus.

[neinstein]

schiff the 5.5 g/t may be correct but the extorre story was more about the very high gold equivalent grades and the upside from further exploration. then apply a minor discount for argentina, perhaps offset with a premium for a very mining friendly jurisdiction with infastructure, etc.  i think a similar range of $175-$225/ounce figure is much more appropriate for California than the

[Red5Luke]

What is stunning is that GWY has been able to keep a lid on any ongoing talks.  Of course they do seem to excel at not releasing information (sorry I couldn't resist).  With all the parties and officials that would have to be involved in such a complicated transaction you would think somebody's uncle / 2nd cousin / neighbour would be leaking details.   If you

[SchiffKnowsBest]

Extorre is a great example for how a buyout can go under the radar, or be held down to look like it went under the raddar.  Look at that stock chart from Feb 1st until today.  It went from about $9 Feb 1st, all the way down to $2.54 on Friday.  We thought we had it bad being down about 40% in that time period.  Extorre was down about 70%.

[NaturalCurrency]

oldtimer - can you share your math which suggests $3.2 for Cali?

[oldtimer42]

Hi Natural. Extorre sold for about $417 million. A simple calculation dividing $417 million by GWY's share total of about 130 million equals $3.20 a share. This is not scientific as there are other factors involved but it gives a reasonable measurement of expectations for GWY provided they come close to the 2.5 million ounces of reserves identified by Extorre. Around $3 seems the consensus of

[NaturalCurrency]

That's what I think too. Cali should go for about half a billion if they are able to prove up around 2.5M oz.

[whiteirish]

Argentina has not "begun nationalizing properties. They took over the YPF oil property because Repsol promissed to further develop it but didn't; and Argentina was having to import oil. IMO, Argentina is not Venezuela. We don't need to include them in that category so rumors have to be corrected. Here's info on it : Argentina and mining I think there is a zero chance of

[Specboy20II]

Ignore whiteirish.Bullboard stalker and basher

[whiteirish]

Go to Copper Fox (CUU.V) or Candente (DNT.T) board and find out the general opinion of Specboy and his sockpuppet, brundall.   He's a hustler.