Primed, Hog, Sculpin
I'm having a great deal of difficulty wrapping my brain around the possibility of how high the shares of SLI could go. I know that numbers have been tossed around ranging from $100/sh up to $1,000/sh. That's great! It would be like me winning the 649!
But here is where I run into the problem. Assume $100/share. That would result in a market cap for SLI of $10 billion. To my recollection, the largest deposit bought (I may be wrong) was Voisey's Bay by Inco a number of years ago for $4.5 and they had a heck of a time digesting that purchase. And that was only nickel - this is gold.
Other than maybe Xstrata, BHP or Freeport Mcmoran, I don't know who could afford to buy us out. That being the case, I wonder if we will have to sell at some sort of a discount to our estimated value just to get a buyer. These companies have different administrative cultures and I would doubt that they could take partnership interests and jointly buy us out.
That being said, I wonder if Tesoro should be spun off into a separate company and sold individually. After all, Primed, in your summary you indicated a value of over $2 for all the properties outside Tesoro.
Tesoro Gold Inc. - doesn't that sound good?
Here I go counting the chickens before the eggs hatch again. But do you see the difficulty in getting the right price if our mountain of gold is worth say $150/share?
Comments?
Thanks, Ismore