Hey Spec, On balance, I have to agree, though... I still wonder if they had simply raised capital and thrown $200m at DEG, to take a 20% stake in the company from the get go, shareholders may have ended up with a better outcome. (though I suppose DEG may not have been open to that sort of deal). GOR missing out on the Rebecca project (which I still find surprising they even went for it, when comparing it to DEG), meant they decided to go much bigger.
Perhaps... they even have Goldfields on board to do a similar deal, once they merge with DEG. Then they will be sitting as non-operator on two of the best mining projects discovered in the last decade.
@bungalowbill - as you say, of course, if they have a huge discovery, the I will be reading about it for years, but... to date, the extra millions could have gone straight to shareholders pockets. Exploration is indeed a calculated gamble, with even the best in the business not able to guarantee a find.
Perhaps DGOs other assets are worth a few bucks, but... DCNs shares are worth about $7m and as for Yandal, very early days.
It will be very interesting to see how GOR play things out. My guess is they will likely just take a bigger slice of DEGs next capital raising, pushing them to 20% (no need to buy on market) and then... just bide their time.
In the end, whilst I like GOR, I just feel on balance their team are too comfy, too well paid and not of the calibre of say NST/CMM/EMR/WAF.
GOR Price at posting:
$1.40 Sentiment: Hold Disclosure: Not Held
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