Someone may want to call "Mayskaya" and let them know Aurus is buying their company for $3 Million after signing a Memorandum of Understanding with "a group of Russian companies".
Somehow I doubt 'May' will be doing what of course you'd expect a company to do in this situation...that being updating their own website with the 'buyout' news. If Aurus' track record is any indication it's highly doubtful "Mayskaya" has ever heard of Aurus....and will love learning they are selling their company for $3 mil.....LOL. Heck for the whole $3 mil I'm surprised the shrewd business men at Aurus didn't get them to throw in Polyus Gold for kicks and giggles ;-)
Well, let's read the article from your link: http://www.mayskaya.ru/articlepress.html?id=17 1. GK "Mayskaya" produces 550-700 kg of gold per year (actually, 700 kg is the number for 2010, but let be conservative here). It's about 17,700-22,500 ounces. It's about $17.7-22.5 mln (again, very conservative estimate $1000/oz). So, "Mayskaya" has about $20 mln annual revenue. Paying $3 mln Aurus would get it for P/S ~ 0.15. Unheard luck. Even non reporting pinkies with P/S less than 1 are considered to be a bargain. For gold producers 5 and more are normal estimate. So, here we have legitimate gold producer with documented production, that sells itself 20-30 times cheaper than it's worth. 2. "Mayskaya invested 158 mln rubles to buy equipment just for this season". 158 mln rub ~ $5.18 mln. What a bargain! Aurus is buying them for less than price of equipment they own. All the rest (dozen of artels, Draga, etc.) including millions worth production is a bonus.
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