Don Durrett is a very well respected commenter on precious metals with more than 58,000 followers. I like his comments and especially the fact that he is well versed on an endless amount of precious metals stocks.
Reading his comments, I think many of us who are upset here are very well justified to be upset with the deal.
Reading other comments from some people, I also believe that maybe ADT holders who own a similar amount of DPM and got in DPM early would probably be very happy with this deal. And this is what it might come down to ultimately unless we get another bigger company offering a better takeover price. I think Don mentioned something of that sort too in one of the replies that someone could offer more.
Here is what he had to say – All 3 comments by Don on x with links copied and pasted below. You can read the main comment with all further relevant replies to get a more comprehensive picture.
Dundee Precious Metals to acquire Adriatic Metals.
I have mixed feelings. I own both. I would have preferred Adriatic to grow into a monster. However, one less silver miner means the other silver miners just got more valuable. Plus, it will help Dundee.
It is disappointing that a rare silver company immediately disappears. They didn't even get a chance to ramp up production!
Here is yet another example of a development project getting taken out after it is fully derisked. It's disheartening. This happens over and over. I feel for Adriatic shareholders who don't own Dundee, and don't like seeing their shares stolen. ☹️
https://dundeeprecious.com/site/ass...nnounces_proposed_acquisition_of_adriatic.pdfhttps://x.com/DonDurrett/status/1933451577723138518I forgot to mention that the deal is 65% shares and 35% cash. They did not mention a breakup fee if Adriatic backs out.
They are claiming a 47% premium, but that doesn't pass the smell test.
They are paying 268 pence, which is only a 22% premium above 220 pence, which is what it has been trading at. You could make an argument that the premium was even lower, considering the recent move in silver.
https://x.com/DonDurrett/status/1933627264283160760One final reply to those who own either Adriatic, Dundee, or both.
If you only owned Adriatic, you got rug-pulled. They had not even ramped up production yet. Its true value is at least 100% higher in the near term, and a potential 10-bagger in the longer term. Plus, you only get 65% shares in Dundee. By the time the deal closes, if you want to use the 35% cash to buy Dundee, you will likely have to pay more than it is valued today.
If you own both, then it's not a fantastic merger because you lost some upside with Adriatic. However, at least you got a boost to Dundee, which should now be a 5+ bagger. It strengthens Dundee significantly. So, overall, it's not a bad merger if you own both. I'll take it.
https://x.com/DonDurrett/status/1933989855429898637
(20min delay)