Hi @cwhite688 Your question got me digging into B2 Gold’s...

Hi @cwhite688

Your question got me digging into B2 Gold’s current position. Looks like they only have about US$242 million (A$326 million) in currently available liquid assets which would not be enough to comfortably cover an all cash take over for WAF at say a 60% premium to its current price (say at 61 cents starting gambit) which fully diluted would cost them about A$364.4million. A figure one would expect to be pretty easy to defend based on the recent after tax NPV value of US$405 million (A$547 million), although if an expert report put that figure into an unfair but reasonable category the game would be on if major holders begin to be won over by sweeteners (say an extra 9cents bring the offer to 70cents per share or $418 million fully diluted).

According to their own presentations B2 gold has

“Good access to capital:
• Demonstrated ability to access debt and capital markets on competitive terms and a history of innovative financings”

so I doubt it would be difficult for them to raise money for a take over of WAF if they think the timing is right. They’d also get the benefit of about $44 million that WAF holds in cash if they launched the take over now.

I don’t think B2 would want to use script for a take over at this present time as they probably consider their script as being undervalued, as with completion of the Fekola mine in Mali their production guidance is expected to rise to 950koz -1Moz/annum on falling costs and they are expecting revenues to rise on average to US$1.2 billion and cash flow to rise to US$0.5 billion over the next 3 years. B2 should not have a problem with cash going forward IMO so it comes down to timing for them IMO. I’d say they might be happier to wait and let WAF go through the hoops of sourcing finance and getting to a decision to mine point, by that time B2’s ability to pay cash will likely be much improved. So this could turn into a longer waiting game if another potential bidder doesn’t see the opportunity and try and swoop over the top.

On your other question you’d probably need to ask Richard yourself. He has been driving this project for a very long time. If the company got taken over he will make quite a bit of money which could look like an attractive early retirement option. Also it’s not easy to find projects of the same quality as Sanbrado so I doubt this team would be rushing straight into another project without doing plenty of due diligence. If they found another project you’d certainly give it a look, but let’s let them win for us on this project first.

Also just noticed this

https://unauthorised investment adv...ake-over-talk-for-west-african-resources/amp/

on the WAF website. Uploaded on 28 June 2018. Sorry if it has been posted previously.

Eshmun