who has lost the plot ..., page-15

Kenobi,
Oops. Yep, you're completely right.

Siameseparrot,
Sorry, Directors' task is 27% harder. My bad.

I still think this deal sucks.
The only way it can possibly be better than going it alone into development, is if Norm knows something we don't about Palmerejo's economics.

Norm's sole rationale for doing the deal, at the price it's been done, is that he thinks CDE is presently undervalued. Well, I see: CDE falling, while silver price (and BSG price) is rising; CDE holds two major assets, both impaired by serious political/environmental risks; BSG readying for production in around 12 months; BSG becomes CDE's jewel in the crown, at minimal premium to us; even with the BSG deal announced, CDE continues to fall; post-announcement, both companies are falling as one - not a vote of confidence.

We have discussed ad nauseum the fact that the Directors hold 20%, at a very low cost base. They have taken the unusual step of assigning their shares away, before their employers (the shareholders) have even voted on the proposal.

I'm sorry, but I would prefer that my companies' directors consult me before they sell themselves out of the company - after all, we granted them the options as an incentive to build the company. They have committed themselves (and us) to a deal which doesn't look good on the surface, simply because Norm paternalistically thinks CDE is undervalued and we should take his word for it.

The Board have already voted their shares, before they've even asked us (their employers) our opinion. And, just to rub salt into the wounds, they've agreed to pay the supposed suitor $9m in "break fees", if we vote against it.

So, who approached whom about this deal? And who won those negotiations? Why do I feel like BSG lost?