Pick and Roll
I am not suggesting MGX will be the only one bidding , but you seem to suggest there are thousands of buyers out there , when the word from all that know is there is a big supply of assets for sale. Look at the big miners globally, and look at the gearing ratios relative to the last decade , have a look at there interest coverage cover - the facts are there.
Also pension funds as far as i know are not normally purchases of mines , as they need specific expertise and many have Social responsible investing constraints. Pension funds are also interested in long term themes and very long term assets ( roads , infrastructure , agriculture etc ). I am very aware of pension funds globally , and I am also aware of the fact that these funds are so big, they tend to only look at big investments as it takes the same work to analyse a 150m asset than it does a 1 billion dollar answer
The other point one needs to consider is a lot of assets are developed via companies raising money through equity, in this environment Sp are very low and it's too dilutive for companies to do this, so again these assets may be sold or a JV partner bought in.
I do agree with you on one point, and that is MGX needs to make sure they acquire a quality asset (or two )
MGX Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
