Very good on paper for management and long term holders however imo alot of value is left on the table with exploration upside, low cost and potential expansions, perhaps they are taking the view that financing and construction in this market too much a risk so cashing out when they can.
For me B2 needs PIR alot more than PIR needs B2 to lower their cash costs, similar for most mid and large gold companies recently acquiring mature projects to lower their all in cash costs in the short and medium term. Many reports have suggested PIRs ground is good for 10Moz plus at above average grades so there is at least another 5Moz to be made from this transaction less discovery costs.
Hussy
Andean recieved an offer from GG they couldnt refuse as they paid for exploration upside, high grades and lows costs beyond value per ounce. Although Andean was a step above PIR and during a better market, i dont see B2 paying for additional upside with PIR in the offer. Hope one of the local african gold majors knocks on their door above B2.
PIR Price at posting:
$1.60 Sentiment: Hold Disclosure: Not Held
