RE NGD-WTA, I do like the really long time before expiration in June of 2017. Let's see, how old will I be then? The strike of 15.00 is a little far out with the stock at 7.50. But you've got the merger going for you, and I think Lassonde is right about what it will do to the market's perception of the shares. And you've got solid production already, so the merger really does create sort of a Yamana type deal, although smaller.
Speaking of far-out warrants and Lassonde, I own some Franco Nevada warrants, which I kind of bought blind, and the strike on those is $32 with the stock at $20. So quite a spread there, and with fewer years for it to go away. So I too could get interested in the NGD-WTA. At least enough to get a taste now and think about it with some skin in the game.
As I am writing this, it occurs to me to say: Premier Gold PG at 2 bucks and change, or Kodiak Exploration KXL at less than $3.00, are both long-term calls on the price of gold, and neither has an expiration date. True, the gold each owns is still of an unknown quantity. But it is fairly clear to me that both of them are sitting on lots of precious metals.
So I bought some of both.
That's part of my hedge on inflation -- two well-run cashed-up gold exploration plays with very strong prospects and good managers who are bound and determined to drill their way into billionaire status. I honestly think we are going to look back at the cheap 2008 prices for these quality drill plays that have already had drill success, and laugh at it.
KXL 88.3 mm shs, c2.66, market cap $235 mm.
PG 68.6 mm shs, c2.10, market cap $144 mm.
Amazing values, really.
Michael |
