<<Big deal, so the notes get converted at par and even assuming the amount outstanding is 234 million (trading now at 2/3 that and the company has normal course bid in and plenty of cash to execute it).>>
Yes it is a big deal, that difference of $66 million is twice the value of all the common shares. You were probably overlooking "small" details like this prior to when TVX did its last 8 for 1 reverse split, and will be saying the same thing when the next one comes along. TVX has lost 75% of its market cap in the last 12 months while the so called dogs (as you put it) HGMCY and DROOY are close to breaking even.
<<But, I suppose you are going with the notion that advanced stage ten million plus ounces of low
cost (sub-100 cash cost) gold have no value argument a la Great Basin? >>
I couldn't care less about the cash cost. It is the total cost of production that counts. And yes it has no value to me if all the value gets transferred to the bondholders 12 months from now. You are right that I am not obsessed with finding low cash cost undeveloped deposits the way you are. Mining is a cyclical business. And when this cycle turns it is the marginal deposits that will increase in value the most. And if you don't believe the cycle will turn, you shouldn't be looking at any gold companies at all.
<<The price of the shares at conversion will not much affect the total market cap of the company. >>
So ? I don't recall saying otherwise. I am not a bondholder and so I don't give a hoot about the total market cap of the company at conversion. But I do care about what price the conversion takes place, ie. at 25 cents per share or at $1. And right now this future conversion price is as clear as mud.
<<The best outcome is going to be an outright sale (or major JV cash infusion)of this company, and NDY makes the most sense. They operate in Greece and Turkey already, and would pick up one of the better projects in the world. TVX is not going be able to develop the Greek properties alone, as they are too small and constrained.>>
Doesn't look to me like TVX is in the driver seat to ensure a best outcome. They are racing to beat the 12 month clock in a brutal gold mining bear market. If this thing is not resolved in the next 6 months, it is the bondholders who will be in the drivers seat.
<<The reason Batiste is gone, is that the work out people are on board to carry this out. This company is for sale.>>
How do you know this to be true ? |
