sharks swimming in the water
posted on
Mar 17, 2011 05:11PM
Just as the financial world is absorbing the after shock of the massive falling out of the Japanese crisis(My heart goes out to those wonderful,resilient japanese people),I notice that a few of small to medium sized companies out there are trying to scoop up or merge with some good little companies .Timmins gold is trying to buy capital gold etc.Given the attractive assets of PRB,I doubt that no one is looking at the company with drooling anticipation if only they can get hold of all the facts and figures closely guarded and withheld by the management.Whoever wins PRB will brag about what a great deal they got for the company some time in the future like goldcorp,s deal with virginia gold.Who does not want a company sitting on a 5% gold royalty producing average 175000 ounces yearly with an average cost of$350 or less ,still growing in size and extension of production years.Even if one company pays 100million for PRB now, they may be able to retrieve most of the amount paid during the years they collect royalties.Not to mention about the B C deposit plus borden plus plus.But do we want that?
I believe that Dave and management are looking far into the future and realize that it,s not that simple just trying to find and prove up deposits,but they also have to play a chess game to win in the end.Let,a just sit tight,hold our breath and ignore the daily ups and downs of the sp.