Ann: Quarterly Activities and Cashflow Reports , page-6

re: Ann: Quarterly Activities and Cashflow Re... Am I alone in thinking that the tone of today’s announcement was in stark contrast to the generally positive, mostly upbeat and often optimistic CGT announcements & presentations released throughout most of 2011 prior to November last year? Today CGT announced its best ever Quarterly result, and yet it seemed, a concerted effort was made to keep the announcement as low key as possible. For some reason the management appeared to report this outstanding news in a rather sombre, matter of fact way. 18.5 million dollars in the bank?!?!! Thank goodness the Board of Directors were able to squeeze that extra $3.9 million out of Lion at 11.5c (I say sarcastically shaking my head)
 
As at 30 June 2012, Castlemaine Ltd is now producing 9300 ozs of gold a quarter at a profit of $573 per ounce and the BOD has happily sold 34mil shares to Lion at 11.5c & earnestly advises the holders of the other 264mil shares to accept 18.4c a share for the rest which equates to approximately $52.5mil for the entire company. Fortunately market forces have pushed the sp to 20c per share, with 8.7mil traded today at that price, but this still only values CGT at $60mil all said & done. Maybe I’m being overly cynical, but I cannot see how this takeover deal is in any way good for anyone but Lion Gold. Notwithstanding the fact that Lihir ploughed 3 or 400 million dollars into the infrastructure, since purchasing the Ballarat assets, the Board of Directors have tapped shareholders & investors for over $70mil ($30mil in May 2010, $25.4mil in Mar/Apr2011, $11.2mil in Dec2011 and $3.9mil in Apr2012) and supposedly Castlemaine also have 4 other assets, Castlemaine, Berringa, Tarnagulla & Sebastian. If I owned all of this company I would not sell it for only 60 million dollars, therefore I cannot accept selling any part thereof for an amount equivalent to such valuation.
 
The logic that lead the Directors to recommend acceptance is simply beyond me. On exposed information this takeover is just a terrible deal for all holders, the Directors included, unless..?
 
Does anyone else smell that passing tuna trawler?