Hi, Brody:
To some extent, I agree with you that Conquistador is priced a bit higher compared to Gran Colombia. But if you look careful at the management team, you will think it really justifies the premium. I always believe that good people brings good effect and result. I have talked to so many financial advisors who are familiar with resources sectors, almost all of them agree that the management team of Conquistador is really great. But not many say good thing about Gran.(My source told me that Bob Bishop visited the property of Gran Columbia, but he didn't visited the property of Conquistador, and he end up recommending conquistador a lot.)
The grade of conquistador is twice higher than that of Gran columbia's. And the underground mine is open-pitable.
Conquitador has less than 20 mm shares outstanding, but Gran Columbia gets 40mm shares outstanding. If later both company needs same amount of finance, v.cql is in better shape.
Conquistador has more property than Marmato, some of the other property will likely provide more upside later. But Gran columbia is just one property play, so there is more risk and I don't see too much long term potential.
I am still holding some of Gran Columbia shares in hoping of a take over, or their sharing the success of CQL drilling. But I know that Conquistador is not interested in taking over Gran Columbia, which means something.
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Finally I found it is more easy to talk to IR person of Conquistador. Last year I always wonder why I called the IR person of Gran Columbia after I spent several bucks.
So I believe short term, both companies will do fine, probably will move paraller to each other. But long term, I will definetly choose Conquistador. That's exactly what I did in the beginning of the year. |
