In the press today (and via Reuters) there was an article highlighting Zhaojin's criticism of Tietto for not accepting their 58 cent takeover bid, and then for Tietto not meeting production targets.
There was a record album in the 1970s by Steely Dan called The Royal Scam, this is what Zhaojin are trying to pull with this opportunistic takeover bid at a low price, and then via their criticism.
How is it a royal scam then?
That is easy to understand.
Because, you see, it's not about meeting targets, because targets are arbitrary - everyone needs to understand this.
It is about profits and debt.
In a couple of months, Tietto will be debt free.
What counts, are profits, not targets.
"If the gold price keeps rising, and targets are not met, the profits WILL still be HIGHER than if the targets are met at a lower gold price."
It's about profits, not targets, so don't get caught out by Zhaojin's criticism and attempts to pull off a royal scam.
Don't get scammed by a Chinese group wanting to effectively steal a low AISC gold producer, and (near) debt free gold miner, for a low offer, at a time of the highest gold prices in history.
Be educated, and see the bid for what it is - a royal scam.
It's NOT about targets, it IS about profits.
Profits are determined by many factors.
Gw
TIE Price at posting:
60.5¢ Sentiment: None Disclosure: Held
