Ann: LGL rejects acquisition proposal from Newcre, page-15

re: Ann: LGL: LGL rejects acquisition proposa...

Hi radgebadge

Yes I agree,,but takeover and mergers rarely work and who was going to buy NCM?. Its just part of the norm in the mining/Gold space and always has been.

Rumours about NCM being swallowed litter the papers and internet for years but no one stepped up maybe because at these prices NCM has no earnings really and production is not firing, just lots of gold in the ground. Great trading stock,,but a poor investment

Someone asked me about buying NCM shares yesterday... I explained the entire GOLD space is high risk/ reward but on a fundamental basis just be aware

You can buy a 330000 property and make about 350/week in rent gross, every week (every week of course an assumption) say 182000. Pretty stable but not without risks like interest rates etc

or you can buy NCM today, they will pay you rent for your money of about 3000 per year, but income is not guaranteed and paid only twice a year, plus the ability to sell will depend on international factors like Gold price, the AUS $ etc etc and the price could change if you want out buy more than 5 or 10pc up or down

or you could put it in the bank and get 16500 for little risk.......

Thankfully they decided not to invest

As for NCM offer of 3.87 for company with DIVS of a couple of cents is a big big risk if gold does not go up significantly in the medium term,,,plus its a cash a script offer so its going to be super dilutive for NCM holders...

Dont get me wrong,,,Im not annoyed,,,,I am super short, its just a corporate play....the only thing for me is that I willno longer trust the MD who stated time and time again the risk of Lihir were to great for his shareholders, but today holders are supposed to forget.....Im sure those topping up at 33 or 34 taking the long side this week are not happy about this or the current SP...

Will be interested to see some of the analysis that comes out