I have no doubt that the deposit that DEG has discovered (which is a tier one asset )will be produced.It is in a safe jurisdiction with limited political risk .Just look at what has happened in Panama with the Cobre panama mine which is a huge mine which is producing .The government there has suddenly changed the rules after investment of a large amount of money.This has impacted FNV.
Newmont has just completed the takeover of Newcrest ,this is a huge acquisition and it is going to take at least 2 years for the economies of size to be manifest ,this is going to involve a bunch of people getting laid off to reduce expenses and make the takeover work financially ,this is what Newmont has said .Newcrest had important assets in British Columbia which will be developed first .Newmont will have their hands full for years whilst they sort all of this out .Same with Agnico ,they have clearly stated that their focus is on the assets in Quebec/Ontario.Fosterville is a profitable outlier that is gradually being depleted .Thus no interest in DEG .
Barrick is a smaller player relatively speaking who has just committed 2 billion to a large gold/copper prospect in Africa.They simply dont have the resources to commit 4 billion or so to get Hemi producing in 3 years.
If a major was interested in Hemi/DEG they would have participated in the recent offering at 1.05$ Au but no one other than Gold road stepped up to the plate and they had no choice.
Lithium is just pie in the sky ,the price has dropped and the existing Lithium miners profits have dropped to a major degree.
So in my opinion any one with the resources/money (and there are very few worldwide)will just wait for the Lalonde curve to work its magic ,their will be difficulties obtaining the financing/permitting/ building of such a big project and the price will suddenly drop sometime in the next 3 years .If at that time the AU dollar is still extremely weak then someone might step in but with a premium of no more than 10-20% since the takeover will occur at the bottom of the curve .A generous estimate of the value of the in ground reserves is about 800millionUS,with a producing plant at its currently projected capacity about 3.5 billion US.No amount of speculation about takeovers or Lithium or underground reserves or prediction by brokerage companies will change that simple fact .
The value of inground reserves not going to be produced for years is currently at an all time low ,DEG is the outlier .
The only hope would be if the POG goes up a lot but a rising tide lifts all boats and those companies with the cheapest reserves will go up the most,those with the most expensive reserves will go up the least.
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