everaz play

In years to come they’ll probably make a movie based on this cfe/Everaz/MCC deal. I’ve been a longtime holder of both cfe & igc & was sensible enough to unload a number of my cfe shares when they were at 90c but held on to the remainder & since have bought more. At the time of the last shareholders meeting I like a lot of other people did a lot of research & no one saw the Everaz MCC deal coming. It caught everybody by surprise & it is yet to be seen who eventually does who between the Russians & the Chinese.
With regards to Everaz & cfe, the indications are that they still want it (a letter sent to cfe requesting a member to represent Everaz but also they are playing a strategy by informing the media immediately) but they’ll try & get it as cheap as possible. So far they have played it out well. i.e. prior to the shareholders meeting, a takeover bid would have been around $1.10 -$1.20, now however just little more than a month later we would accept $0.90 - $1.00 & probably an offer of $0.75 - $0.80 just to be over & done with. Its also worth noting that Everaz does not want cfe to pay the div so they’ll have to make a takeover bid north of $0.75 & I’m hoping well north (yes I know the papers reported $0.92 but they at times get it wrong too), or there other option is to try & get rid of the board. Will that happen? How many shareholders would back the Everaz play here? If there was a new board of directors, it would look out for the interest of Everaz & not necessarily the interest of shareholders. It may not be bad. What needs to be remembered is that Tony Sage still has a lot of backing & its by no accident the way the new deal with African Minerals was structured, to ensure he has the controlling backing so Everaz can’t come from left field again. Personally I feel more comfortable with Tony on the board because he will do what’s in the best interest of the shareholders. Why? Because Tony is a major shareholder himself & I understand that all or a least a majority of the holding that he has he has personally paid for it & it wasn’t free script. Therefore when we loose, he looses too. I know that many are disappointed with the free options given to staff. Legally there was nothing wrong with it, ethically though…. but analyzing the outworking of this is that you end up with staff that are not disgruntled but will tend to be more loyal so Tony may not be a dumb as many think.
With regards to Sierra Leone, some time ago Ian Burston described a vague project in South Africa that they were working on, likening it to a large elephant & cfe current project as a mouse. We all now know its Sierra Leone that he was alluding to. Apparently he had some involvement/knowledge of this project years ago. I’m sad to see Ian leave cfe, don’t know the exact reasons, he is 73 but at least his team remains & we have there expertise still working on this project. Clearly the Russians would be chasing this one too.
It will be an interesting ride, were sitting on heaps of cash (MCC deal as well as the options being converted) & some interesting valuable assets.

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I bring gladness to everybody, hopefully when I’m in there presence but for others when they see me leave. Seeya