Unfortunately the history of their takeovers has shown that their share price drops afterwards, although the assets have sometimes been very good. I do not think EDV did themselves a favour by merging with ADU, but their subsequent merger with Avion brought in some very good assets, with the Mali project to yet be fully upgraded to its potential, but costs are coming down. The Avion deal also contained the Hounde project which should get the go ahead if the USD POG can stay above %1300.
I am expecting a tepid response by the market, but I am willing to be pleasantly surprised. What I would like to see them acquire is a lot of very high grade ounces within trucking distance of their mines which would mean that their operating margin jumps a heap (TSX listed SMF was looking like a goner with their low ore grade operations and then they found a nearby high grade deposit which has saved them). If EVR could lower their AISC to around USD800-850 then I think they could safely give the go-ahead to the development of the Hounde project, and the company would become a 700k ounce per annum miner with a big operating cashflow. Just speculating of course.
The mining conferences gives the opportunity for CEOs to meet up and make deals.
loki
EVR Price at posting:
63.0¢ Sentiment: None Disclosure: Held
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