craig said:
...you guessed it. $115,825,000. I assume that it doesn't exactly hit $117 mill because of rounding. Remember that the majority of GIFS assets are being given to the buyers of (CRIC). It sounds to me like GIFS traded book value away for earnings growth. I'm sure that most of the assets used to guarantee the performance bonds are going away with CRIC.
Lee says:
Go back and read the press release again. While I don't claim to know exactly which assests are included in the sale there are several that it specifically states are not included.
And I quote "GIFS will emerge out of the CRIC sale retaining ownership of the Miller Mountain Gold Mining operation, Guarantee Settlement Corporation, Inc., and Longhorn Energy Corporation, Inc., presently held by CRIC. The control and ownership of other GIFS subsidiaries will not be affected."
It specifically states that Miller Mountain Gold Mine is not included. I'll now qoute from the SEC Form 10. "Consequently, the proven reserves based on certified geologist's reports exceeds $50 million in totality and probable reserves exceed the $180 million level based upon a 5-year operating span."
craig said:
Summary: At first glance it may seem that GIFS received $117 million worth of something (?) plus $5.65 in earnings for 10 years. That would total $230+ million. Why would anybody pay this much for a CRIC when they could buy all of GIFS for around $40 million? 20 million shares times $2. Of course this is assuming that they could get their hands on the shares but I think you know what I mean. SOMETHING IS NOT ADDING UP.
Lee says:
There you go again seeing the half empty glass. I must admit you got me thinking on this one. You pretty much answered your own question. They couldn't purchase GIFS because it is not for sale. And look at it this way, why would Mohamed sell everything for 117 million when he could sell one part for 117 million and keep everything else. Besides it is very logical to think that the buyers didn't want the rest of GIFS. It isn't their core business. |
