GOR is an outstanding gold business.
Before even thinking about gold mining, the value of liquid assets on their balance sheet is:
- De Grey $ 898 mill
- Cash 174 mill
Then there is the Gruyere mine
Say $A 5000-$2500 = full cash margin /oz x 150000 ozs x 10 years = $A 3.75 bill nominal
Then there is the underground & Gilmour
Then there are all the JV & prospective tenements.
The price offered originally was $ 3.3 bill. That's a piss take....who are these South Africans anyway?
I'd say $ 5 bill would be more appropriate.
It's a tier 1 asset in a well managed company that has been underpriced.
What's going to happen to the non Gruyere assets ? They own a huge amount of real estate.
Maybe another company is involved to take on the other assets & JV's. Does Goldfields want it all?
The drop in the share price just before the announcement was Gold Field allies perhaps. Why should the price fall just before such an announcement !!!!
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