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18/10/22
23:40
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Originally posted by Gainzmaster5000:
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my source is in a geologist who works in the nickel sector; have brushed shoulders with IGO board in both professional and expo settings - both met with the same response. the NPV of savannah alone with associated downside potential is too small for a 10B+ company to be interested in. let me put it in a gold mine operation equivalent. would anglo gold Ashanti acquire anything that would produce then less than 150k-200koz a year? most likely not. unless the acquisition was part of a package which allowed them to maximise mill throughput and act as a supplementary ore body. (that's what they mean when saying unless they discovered an mineable ore body nearby: have multiple assets within a general proximity and share one mill) this is a very common practice. essentially a 300-600m market cap company with thin margins is not an appealing target to a multi billion dollar company. projects need much more scale in order to be an attractive target for a company the size of IGO - make a significant impact on revenue. Chalice, Mincor, LTR or CXO are much more suitable targets for a company of IGOs stature.
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He said/ she said is not reliable enough. Also, how do expect us to take your view seriously about IGO not being serious about PAN’s operational and financial metrics when they attempted a failed takeover in 2019. literally throws out your whole argument.