Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (26531)	8/14/2000 1:42:33 PM
From: Letmebe Frank	Respond to of 26850

Its too late for many, but heres a comment on the deal: ottawabusinessjournal.com Posted Monday August 14, 2000 Winspear takeover still a bargain, analyst says By Michael Hammond Business Media Network At first glance, the $305 million revised takeover bid of Winspear Diamonds offers a significant premium for the company, but a mining analysts says people should look more closely. Art Ettlinger, a mining analyst with Yorkton Securities in Calgary, says that, while the revised bid is higher than De Beers' original bid, the South African diamond giant is still getting a bargain in the deal. Ettlinger says De Beers' original bid offered a higher premium for the company's stake in the Snap Lake project per karat than it is now. He says that, under the original $259 million unsolicited offer, De Beers was offering about $11 per carrot for Winspear's 68% stake in the diamond mine which is 230 kilometres northeast of Yellowknife. After the initial offer, Winspear commissioned a new study of the mine, and said that it showed a significantly higher value than previously thought. Total projected revenues for the site are expected to increase to $11.5 billion, the company said in July. Ettlinger says the new De Beers offer, which is worth $305 million or $5 per share, actually values each karat at the mine for less than the original $11. Ettlinger attributes the value of the offer to market conditions. "Few, if any, junior companies are valued at what they're actually worth," he says. "De Beers is ahead of the game when it comes to evaluating diamond projects." Before the De Beers bid was presented in June, Winspear's stock was trading on the TSE at around $2.20, he points out. The company's stock was trading Monday morning on the TSE at close to $5, a 19% jump. In June, mining analyst Doug Leishman said most industry watchers pegged the company's value at $7 to $10 a share, because the Snap Lake project was seen as so much more valuable than other Canadian mining sites. The new De Beers offer still has to be approved by a majority of Winspear shareholders. The expiry date of the revised offer is Aug. 25.