A Suggestion for Mr
@GravityWaves Is to watch the video and then question whether Polymetal are capable of shipping some concentrate to Russia, I'm sure if one of their engineers and the many experts they employ reviewed Mr GravityWaves posts about logistics they would laugh very loudly and understand why we are trading at current levels if the market is discounting our price due to fears of postage!!! Polymetal have some really clever minds employed and they are becoming a market leader in the industry as I said postage will not be on their mind Mr Gravity.
Milan has mentioned in a presentation recently that Polymetal have done extensive met testing of our ore. My gut feeling is eventually these guys will take us out to have an asset in a Tier 1 jurisdiction outside of Russia and I surely will welcome that if the price is right. If they don't then my thoughts is someone else will.
Alternatively NST have a cool $400 million to play with now. Imagine what they could do with our asset. I would welcome any move from the next door neighbour any day.
Our SP is screaming a T/O in the making as we are just way underpriced for our resource and reserve. Our current market cap wouldn't even cover the cost of the mine plant and infrastructure, therefore there is no value yet attributed to our resource and reserves. Current price is a great carrot for a competitor to get to 20% holding for a steal and then pay fair market price for the remaining 80%. You just don't want to be the idiot who sold out to the party accumulating the 20% well below market value. None of our majors have sold one share which tells me the supply for any activity of such nature will come from retail selling low whilst the smart money hold.
I have seen this sort of action in the past on other registers where price did not reflect the market value. Echo resources is an example where NST were able to buy 20% really cheaply and then pay fair price or shall we say a fairer price for the remaining 80%. I guess a little discount in any acquisition is just a price of being a potential target, you just don't want to be the poor sucker who gave away shares at a huge discount.
I could be a dreamer but anything can happen and I'm sure our drilling results and turnaround are catching the attention of many in the industry.
Think about this seriously NST just sold 51% of an asset to EVN for which produced 120,943 ounces of gold during the 2021 financial year. The above mentioned asset as of 31 March has a reserve of 579,000oz gold, grading 4 grams per tonne, along with a mineral resource of 2.44Moz of gold grading 4.1g/t. This asset does not include any plant and infrastructure just reserve and resource.
Our asset on the other hand includes plant, infrastructure and reserve and resource larger and better grade than that sold to EVN to process the ore without massive haulage. Remember that the $400million price tag was for EVN to acquire 51% of the above. So they are effectively placing a value of $800million for the asset.
What I want to highlight from the above is that we are way too cheap, we should have a MC at least minimum 2 to 2.5 x the current price as a floor. If someone comes knocking on our register which I believe we are being priced by our instos for this at current prices then an offer will have to be above $500M minimum push come to shove for a T/O and the final 80%. Maybe even higher than that once our drilling finishes and we get a further increase in reserves and resource.
Will I be a seller on Monday at current fire sale price? Or will I hold on every share like our instos on the register who will realise a re-rate either from operations turnaround, reserve a and resource update or a bid for our asset. I believe we are currently priced by our instos to encourage a bid. Long term holders would have re-rated this a asset a long time ago.
Just my thoughts and trying to make sense of the large value gap to market.