This is my guess as to the agenda
posted on
Feb 25, 2011 03:44PM
My guess is that the agenda would be to first bring together White Tiger and Century and market it as an immediate "mid-tier" With Century's 110k or so of forward yearly production and White Tiger's nominal additional production, they could reach 130-150k or so which would be enough to be considered a Mid-Tier. This entity would ideally now be given an upside revaluation by the market for being geographically diversified and having a billionaire-backed ownership / board. It would also fully cleanse CMM of the Peggy era "discount" through re-marketing the assets under a new name.
This is similar to what Endeavour Financial tried to do with bringing together Etruscan and Crew before they ran out of cash, gave in and sold out to Severstal and just decided they would essentially just become Etruscan.
If they are successful with bringing together CMM and WTG, they can either attempt to consolidate more juniors to market the entity as a growintg mid-tier on the path to becoming a major (1 mil+ in yearly production) or they might just choose to sell for a full mid-tier valuation to Polyus that has deep pockets.
The one thing with this likely agenda IMO is that without CMM, it can not work. CMM has both the assets and the immediate production to set off this chain of revaluations.
So it's in the power that be's best interests to not screw around too much and pay up and give us a good deal. There's no point in having a massive percentage of dissident shareholders while also alerting potential competitors who could try to steal or complicate the deal.
Of course,I have no inside info. I'm just speculating and could be completely wrong. This is just my guess based on my observation of how big money thinks.
RE