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Non-Tech : Le coin des francophones -- Ignore unavailable to you. Want to Upgrade?

To: kamtrader who wrote (7481)	11/20/1999 1:17:00 PM
From: AriKirA	Read Replies (1) \| Respond to of 77509

Pour ceux qui detiennent des actions de PGD Un post tres interessant d'un individu qui semble s'y connaitre To: AriKirA (514 ) From: timbouctou Saturday, Nov 20 1999 10:25AM ET Reply # of 520 "But... is it really that bad for PGD shareholders? I actually find it quite intriguing" Hi Ari. I am presently in Africa (not Tanzania), so it took me some time to find an internet connection and learn of last week's events. Anyway I look at the "sale" to Barrick, I fail to see the benefit for PGD (and more importantly for us). Barrick will have (at least) 1 million shares, plus the option to buy 1.2 million more. They will most likely buy another 1 million share on the market (if they have not yet done so) giving them 2 million shares. They will then hold less than 10% of the stock, and won't have to declare it officially. With their option for an additional 1.2 million shares, they will be in a position to control more than 10% of the stock, should an other bidder come along. IMO this will make a take over by somebody else more difficult, but not impossible. If I was a major interested in PGD (just rationalising), I would build ASAP a 10%+ position in order to be able to play the game with the same deck that Barrick has. That would be a good investment anyway (who ever ends up buying PGD will have to pay much more). So I don't understand why has PGD has made such a sale and in such a way. 1) Did they really needed money that badly? I thought that they had enough money in the bank to continue and expand drilling. If seems that they have decided to conduct a feasibility study. This necessarily implies that Tulawaka, in their opinion, holds much more than has been published so far. So, as suggested in prior postings, they will indeed launch, soon, a very aggressive drilling program and conduct the required tests to bring the property closer to exploitation ... or sale. 2) If they needed money that badly, why have they not released all the drilling results that they have in their hands? My understanding is that they are pretty good (add coming results from Imwero and from Golden Ridge). That could have cause the price to increase and obtain a better price for the new share issue. What they got from Barrick was almost market price (the $6 for the option in 2 years means nothing). So no premium! And for no premium, PGD has allowed Barrick to be in a position to play hide and seek behind the 10% level and move over at their discretion !!!! 3) Is there an other hidden agenda behind this move that will ultimately benefit the shareholders? I certainly hope so, but would like to understand. Could there be a purchase option or agreement of some kind based on the results of the feasibility study? Until now (I might be wrong or I might have been wrong) I thought that PGD's management was very good, very strategic. This "sale" challenges my belief. It is indeed a great move by Barrick (which further contributes to demonstrate how well this company is managed). I don't see how it is or could be construed as a great move for PGD and us shareholders. I think that, as shareholders we deserve more explanations or information from PGD. This being said it does not change my appreciation of the properties that PGD has, or of a fair value for PGD. I think though, that it makes the bidding more challenging (difficult?) or less attractive, and this in turn could lead to a lower price... unless an other major position itself like Barrick has.