koetjeboe's Profile
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The long drop from the 2009 top started on high volumes and ended now on very low volumes, so to me this is a sign that there are no more sellers in the market. Now all that needs to happen is for buyers to return :)
Sure, Chavez will expect to see some cash from the predicted annual 500K oz of gold production. This does not surprise me. What is most important is that RML can still continue doing what it's always done: take the mines into the next phase. What I am most interested in is whether they can actually keep cash costs/oz under control when full production is achieved. Most scenarios so far were based on an average price of USD 950/oz even though returns have been much higher (but so have cash costs). With a greater than 10M oz resource of gold and a projected 500K oz of annual production, even a $100/oz profit would be good news for the share price at a current market cap of $74M.
All I can hope for is that the share price manipulation will be finished as soon as the deal is finalised, so that the new combined company reaches a fair value again based on the combined resources. One thing is certain: I will never sell WTG at the current share price, this would be ludicrous.
By the way, I am now in a similar situation with TWD being taken over by DGC, but at least DGC is a more reputable company than WTG and there is a premium price being paid, though this premium maynot please everyone. One thing however is certain: at current share prices, there will be a massive consolidation in the industry.
Horrible market? Please clarify - are you referring to tight liquidity?
Well well, observer, looks like we're in this one together again :-) On the positive side, Detour is at leastb a bit more credible than WTG!