Originally posted by eshmun
"Sorry to digress, this has not been paid promotion haha. An interesting situation and investment to digest if not sad for those caught up in the mindless violence"
Your appearance, the coincidental timing of your posts and the eloquence of arguments seem to suggest some sort of agenda but I'd have to agree with pretty much all you have said above.
The project would fare much better, from a market perspective, within a more diversified gold company, probably one that doesn't currently have mining operations in Burkina Faso. If you have followed certain posters on this thread, they would tell you that the share price manipulation we are seeing is all part of such a "master plan" in the making. The recent unfortunate events only help to play into the hands of the manipulators.
B2 Gold definately fits that bill as it's prospects in BF are still at an early stage and as
@nordesmic has pointed out planned spending on them is relatively small. Such levels of spending can't see their projects developed quickly. A TO by B2 Gold would act to increase their production profile, while diversifying that company even more geographically. It would also assist B2 Gold with finding a solution for their nearby existing exploration/development assets. There is a lot of potential for B2 Gold in such a take over IMO and they are the most logical "master players/planners".
I've always been interested in seeing a merger between WAF and RSG. Now that RSG have stated their probable intention of selling or spinning off their Australian asset and listing their shares on the London stock exchange, which "understands" Africa better, it really leaves that company open to diversifying risk across Africa.
As mentioned in my previous post, Sanbrado is not far from being classified as a world class depoist by Singer's criteria (ie 3,2 million ounces) and Syama well exceeds that definition with 3Mozs of resrves and 5.7Mozs in UG resources (not including reources at satellite depoists).
I'd love to own Syama and Sanbrado in the same basket. Bring it on JW, I sent you a memo on the RSG threads some time ago. I hope you were paying attention.
Also RSG, like B2 Gold, is aware and understands the threat that Jihadists pose, as Mali is struggling with similar problems to Burkina Faso and Mali and Burkina are both Francophile states so the legacy of the French is a commonality in all these companies cases which is well understood. The managment of NST and many other Australian based gold miners would have no idea of the importance of the French legacy or the subtilities that are required when working in Africa.
Both French speaking expatriote and African employees could be deployed across projects if WAF and RSG (or B2 Gold) were to merge, creating synergies and the trasferability of human resources and expertise. RSG also operate in Ghana where they have plans to reopen the Bibiani gold mine and Ghana and Burkina have close ties both in terms of economies and security. Some of these ties go back to geographic and tribal ties stemming from the Volta River Basin and predate the colonial era by hundreds of years.
If for any reason you are working for the "master planners" ............lol, tell them from me, WELL DONE on the great job they are doing.
A 60% premium to the current price of 22.5 cents is 36 cents. They haven't beaten me quite yet with my average at 31.8 cents.
If the manipulators can get the price down to less than 20 cents I might consider trying to average down again at those levels because that's were they really start beating me based on a 60% TO premium.
Eshmun
LOL.. I'm no master planner. I am a long time investor, speculator, ex-geologist who's been around the traps. Junior resources are a passion but ultimately smallish part of my master plan. Too much insider trading, manipulation and risk to swing it all at the next good thing like the good old days. I'm not that old but I did start out learning the share price each morning from the paper so I'm not that young either lol.
Sure there are games played but usually no where near as much Machiavellian manipulation as the tin foil hat brigade make out. Often it's as simple as fund guys making good money selling down into no news then buying back their position (either buying back shorts or re-stocking long positions) when some bad news or market wobbles shake out some liquidity at much cheaper prices. Why not make extra money by playing the price up and down during the long periods of illiquidity and news vacuum right. I stopped wishing the market was something it wasn't a long time ago, better to embrace the devil you know and go with the flow.
I have watched WAF for some time but unashamedly look to buy deep value and at opportune moments. Got in at 25c after the last cap raise (on market... don't deal with brokers or placements) happy with the discount and to wait for the weak hands to wash out. Should be a straight forward mine build and metallurgy, shouldn't need more cash and who knows when the next M&A event happens. Got enough money to be patient but I'm not the patient type. I'll admit to reading on Reuters early Jan when the last outbreak of violence happened and a couple dozen were killed early Jan, and selling down over half my holdings on instinct before any damage was done. Bit of research since then to get my head around things, this last Canadian tragedy and the share price weakness brought me back in Friday.
Don't know when or if the M&A will happen but the project looks great. The latest deep drilling into M1 Sth almost proves anther half million high grade ounces going deeper will flesh out the last 4 years of the current mine plan at +200,000 Oz/pa. The punt is that we are right regards the project location and Burkina Faso remaining solid and supportive of the gold mining industry. Don't know who will do the M&A but I just can't see WAF staying under valued and alone once the mine is up and running, vomiting cash and extending the mine life. I can't see the management wanting to spend the next 10 years of their lives running a gold mine, surely management and large early investors will be pushing behind the scenes for a M&A opportunity to cash, buy a kick ass boat and head off to Rottnest for the summer.
I can see the gold price walking back this year a bit if the US economy and markets keep on keeping on so there might be further weakness to come but that may also flush out the M&A guys who have been quietly running their ruler over targets but waiting for the right time. Not too much gold weakness mind you or the bankers will shut up shop and nothing will happen. HC can be a great asset and place to share ideas, test one's inherent confrontational bias. Don't get personal and don't takes thing personally. Keep an open mind but take information and opinions with a pinch of salt because of course there are agendas. Play smart, keep liquid and make profits is the name of the game. If there is some interest and fun to be had along the way all the better.
Good luck to all holders as they say.
Cheers
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