Yep, valuation of this thing IS ridiculous. Little question on that front but I guess the other side is some think it could fall over so that nasty risk deters. I can't see it failing myself - low cost producer and no debt is a big safety margin...
A low ball takeover however is a real risk in my view. I think management are walking a dangerous path being so conservative because it plays right in the hands of a predator.
The good news for minorities is:
1/ I can't see any good reason for a capital raising
2/ There is little chance of them getting to compulsory acquisition - I myself probably know 10%+ of the register that want to see a big return from this
So maybe you end up with an illiquid but cash flow generating investment in the event of a low ball offer. There are a couple examples of this that did well historically (Normandy Mt Leyshon for example).
Personally I still think at current gold prices this is worth 30c+ per share and even more at higher gold prices.
Time will tell............
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Last
39.5¢ |
Change
-0.020(4.82%) |
Mkt cap ! $2.686B |
Open | High | Low | Value | Volume |
40.5¢ | 41.0¢ | 39.0¢ | $9.181M | 23.04M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
34 | 1243803 | 39.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
40.0¢ | 139143 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
33 | 1242044 | 0.390 |
15 | 644451 | 0.385 |
29 | 1163879 | 0.380 |
5 | 300070 | 0.375 |
26 | 801786 | 0.370 |
Price($) | Vol. | No. |
---|---|---|
0.400 | 139143 | 5 |
0.405 | 607644 | 6 |
0.410 | 622427 | 9 |
0.415 | 292677 | 10 |
0.420 | 496877 | 18 |
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