Decoding a Cryptic 'No Comment': Is a Major Shift Brewing in This Gold Company's Future?
Reading Between the Lines of Management's Uncharacteristic Silence. A Potential Takeover?
The management of a certain gold company I know are normally very communicative, especially with me. Lots of texts, emails and all the rest of it. They are mining promoters after all and every promoter is looking to publicise their story. Bloggers and journos like me get the story out.
But when I messaged them this week, I was flat-batted away with a rather terse, “I can’t comment.”
That made me think something was up.
The company’s main property - in the Americas - is solid. It’s not the greatest property the world has ever seen, but there are over two million ounces of gold, decent grade, fairly straightforward to mine.
But management are not mine builders. They have de-risked the project, shown how a mine can be built and at what price. It is “construction ready”. But they don’t want to build a mine themselves. They have made this abundantly clear in their literature and social media: the property is for sale.
Thing is: it’s been for sale for two years. I’m not saying anything new. What has changed is this sudden, “I can’t comment”.
I also note that the most likely buyer of this company, a billion-dollar, multi-national operation, which is aggressively expanding, experienced in the country, with concessions, a mine and, most significantly, a mill - which needs ore - almost next door, completed on a major acquisition just last week. Its hands are now untied. It can move freely
Is this “certain gold company” about to be taken out?
If so, at what price?
Something is afoot, in my view.