It is a possibility, but there are a huge number of low cap (penny stock) peers out there with small but solid gold resources worth a fortune right now at todays prices - ODY, VRL are just a couple. These companies are struggling because it is an uphill battle to raise funds at such low share price zones with plenty of shares already on issue. Makes it difficult to pay the way to development. For a low to mid cap producer like us with cashflow coming in, there are plenty of cheap opportunities right now to expand on our 1.8 Moz Au IMO. Better to get in fast and snap them up before everyone else wakes up to them...
VRL: The Korong and Waihi Deposits comprise a JORC-compliant (2012) Inferred Mineral Resource Estimate (MRE) of 3.26 Mt @ 1.4 g/t Au for 154,000 ounces Au with huge expansion upside. It has a market cap of just $2M. Taking over this company right now would get our total to around 2.0 Moz Au.
ODY: The Tuckanarra Gold Project comprises a JORC-compliant (2012) Inferred Mineral Resource Estimate (MRE) of 5.1Mt @ 2.5g/t Au for 407,000 ounces Au with huge expansion upside. It has a market cap of $23M but was just $14M a fortnight ago. Taking over this company right now would get our total to around 2.2 Moz Au.
People may say, we have had enough M&A, I would rather drill, but drilling is no guarantee, and these deposits are already confirmed and in good regions. The millions in drilling have already been spent by previous companies and they are now at an advanced stage. There are scores of other companies out there like them. I am currently in search mode to expand my portfolio to add more to my basket. I am sure HRZ management are doing the same to score a bargain to add to the portfolio.
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