One thing to consider when valuing us which hasn't particularly be done by the market (to even the slightest degree) is the strategic value in Teck getting rid of us and buying us out. A lot of us on the board recognize this value (i.e. Teck has to take us out). Quote from the aureport talking about the concept similarly.
TGR: In November, you noted some "underwhelming" M&A multiples. The Alamos deal is $4.65/share for each share of Aurizon, or $0.35/share above your 12-month target price for Aurizon. Do you consider the offer underwhelming or did it surprise you?
PL: The offer surprised a lot of people. It's a strategic shift for Alamos to go from heap-leach mining in Mexico to underground mining in Canada. We actually bumped our target to recognize that the company is in play and that different valuation metrics apply. It's no longer about fundamental value; it's about the takeout valuation. There's probably a sweetened offer to make the bid friendly in order to retain some key people. There are still several iterations to go through between the fairness opinion and the data room being opened.
http://www.theaureport.com/pub/na/14944?utm_source=delivra&utm_medium=email&utm_campaign=Gold%20final%20streetwise-reports%2001/23/2013%2014:46:47
There's value in taking us out for the sake of taking us out because if we do a JV, we're a useless partner that doesn't provide funding, has no experience with building and construction or actual mining - only exploration. There's value in taking us out, above and beyond just the price of the assets that they get.
