Winzer,
That tells me that a serious investor/fund thinks that BGI is a very good buy at $0.36 and will take almost anything you have to give away at that price.
I see we have traded some more at $0.36. However, I think that any news that says that Birim has finally signed the deal with Ashanti (or any other company) and has the money in hand - at least the initial $US 1.5 M. - we should see the stock rise quickly and on big volume past the $0.40 resistance level.
We should know soon what Ashanti intends to do, but it is becoming clear to me that the Ghanaian government doesn't seem to like the terms being offered by Lonmin and is seeking other assistance - like the Saudi prince. Ergo, I don't think Lonmin is going to be successful unless they up the price somewhat.
Also, as the price of gold retreats, the size of the problem is being diminished and therefore is not as great a threat. I still don't understand why Ashanti couldn't just roll the whole 'hedge-book' upward, or forward, and thereby reduce the present financial threat. I would hope that all of those experts would have been able to mitigate the problem somewhat by now.
Finally, Ashanti, or whomever takes it over, still needs Birim's ore. Whether it is today or tomorrow, the situation doesn't change and 1,900 jobs depend on it. They'll make the deal.
Brian |
