This all seems to make sense - I would suspect CCU had lots of people lock at their assets once it went into administration, so clearly it was not perceived a "no brainier by everyone". The price SXG bought the assets is the key as you mention. Not exactly sure why CCU hit the wall ? silver grade ? validity of the silver Resource and what price the silver is truly economic or just bad luck. Without the Mt Bobby ore being treated at Wonawinta my guess is the CCU silver operations need a higher silver price stand alone. SXG have the time to get the CCU acquisition sorted with Mt Bobby ore as a revenue source so it looks like a great deal done and undervalued position. in your numbers above I am not sure if you have factored in the cash inflow if trenchstone and others exercise their options to get the capital base to 3Bill ? that would mean an extra $15M+ cash on top of the hard assets in the group - not a lot of downside if op's team can execute. Looks like a bargin
SXG Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
