Personally,I think the 120 days is irrelevant. This will be more of a gentlemanly business agreement than following some loosely worded document that is 30 years old.
It doesn't seem to be that loosely worded to me, actually pretty specific.
1-Teck and our Managers know that Teck will be in on this project.
This is not known, it is a hopeful speculation. The news release even says it is not a for sure thing that Teck will back in at all.
2-Teck and our Managers want the same thing. (Project Value)
They want the opposite - CUU wants the most $$ possible, Teck wants to spend the least possible $$
3-We have Elmer quoted as saying that Teck is very happy.
I would be happy too if something I wanted to buy came back with lower appraisal than expected. If I am negotiating a house purchase and a house appraiser looks at it and says it is worth much less than the seller thinks (and I know there IS value) I would be ecstatic at the prospect of having a document supporting a lower purchase price.
4-They are already negotiating.
Discussions, lets not put the cart before the horse. Hopefully they are negotiating, but it certainly is not fact, only speculation.
5-There is a gigantic opportunity here for increased value.Teck and our Management already know that.
Agree 100%!
6- When a company is valued by an auditor .Do they just use the share price on any given day? Wow- I could do that.Share prices of any company can be so unrealistic - for no apparent reason- so often your head would spin tring to figure it all out.
Not on any given day, but maybe a 90 day or 180 day average? They won't look back 2 years and say it traded at $2.70 range for a few days. Sure, assets and cash come into the equation too. You must agree that our recent share price doesn't help our valuation, though. If we were trading at $3 right now can we not agree it would be easier to get the $5 buyout everyone is hoping for? I think the deal will significantly be based on actual value (pounds in the ground, recovery rate and capex), but just like our super conservative FS - low share price is not working in our favor (it must be thrilling Teck though). Going to be tough for Teck to sell a 600% premium on our share price to shareholders?
Some day we will be laughing all the way to the bank!
I agree there is good upside from here if we are not thrown any more curve balls (actually even with curve balls we can't be selling out in this range). Certainly would make no sense selling at these levels, but we can't make assumptions on what is really happening as we really don't know... It is frustrating to hold this stock right now, but I am at the mercy of EE and ES.
