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Thursday, July 22, 2021 7:33:58 AM
Who’s Next?
This post is the first in a “Who’s Next” series profiling the junior miners with the best chance of an “eye-popping multiple” buy-out. First up: Great Bear Resources :
Great Bear has the rare distinction of finding gold – sometimes lots of it — in every hole it has drilled. Its property in Canada’s Red Lake district (home to several other legendary mines) is now five kilometers long and still open in every direction.
Add in the facts that the deposit starts near the surface, which makes a relatively cheap open-pit mine possible, and that it’s next to a highway and power lines in a politically stable, mining-friendly country, and Great Bear looks like a no-brainer acquisition candidate. The only question is price. Which is where things get interesting.
When the long drill hole winning streak got going, investors flocked to the stock, sending it up about 20-times from its 2018 low. But once it became clear that fleshing out a deposit this vast would take a while, subsequent great drill results lost their impact and have largely been ignored while the stock has languished between US$10 – $14.
But now the release date for the company’s resource report – which will document how many ounces it has and how easy it will be to get at them, giving possible acquirers data on which to base an offer – is maybe six months away. So it’s time for a revival of speculation about what the report will say and how the majors will respond.
In other words, the coming year might be as exciting as the past year was boring.
https://www.dollarcollapse.com/eye-popping-multiples/
This post is the first in a “Who’s Next” series profiling the junior miners with the best chance of an “eye-popping multiple” buy-out. First up: Great Bear Resources :
Great Bear has the rare distinction of finding gold – sometimes lots of it — in every hole it has drilled. Its property in Canada’s Red Lake district (home to several other legendary mines) is now five kilometers long and still open in every direction.
Add in the facts that the deposit starts near the surface, which makes a relatively cheap open-pit mine possible, and that it’s next to a highway and power lines in a politically stable, mining-friendly country, and Great Bear looks like a no-brainer acquisition candidate. The only question is price. Which is where things get interesting.
When the long drill hole winning streak got going, investors flocked to the stock, sending it up about 20-times from its 2018 low. But once it became clear that fleshing out a deposit this vast would take a while, subsequent great drill results lost their impact and have largely been ignored while the stock has languished between US$10 – $14.
But now the release date for the company’s resource report – which will document how many ounces it has and how easy it will be to get at them, giving possible acquirers data on which to base an offer – is maybe six months away. So it’s time for a revival of speculation about what the report will say and how the majors will respond.
In other words, the coming year might be as exciting as the past year was boring.
https://www.dollarcollapse.com/eye-popping-multiples/
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