I have considered the potential transactions that may be responsible for the recent activity in our stock which I see as follows:-
1. Discussions with other potential JV partners for us to farm in to other permits or farm out any of our prospects. This would be unlikely to generate so much action in our share price due to the uncertain outcome of any future exploration that may result so this is IMO unlikely to be the cause.
2. A merger with a company like OEL from which synergies could be expected. This appears unlikely to be initiated by either party as has already been spelt out by other posters, self interest by management would work against such proposals being generated, no matter how compelling they may appear to us.
3. An approach from another company wanting to take over or merge with NDO. Although this prospect has been dismissed by posters, I believe it is a still a possibility having regard to the cash flow that NDO generates and the additional near term additional cash flow that is within reach with Galoc North and West Linacapan and taking into account that our puny market cap can not have gone unnoticed.
A cashed up company ( such as KAR which will be receiving a substantial injection of funds soon) which may have to wait for it's longer term projects before they start generating cash flow might be looking to add some shorter term cash flow at cheap market rates. Any such approach would require management to engage with such a party so self interest would have to take a back seat. I suspect that there would be other potential suitors in this category.
4. Something I haven't considered from left field which may or may not be initiated by PB. Feel free to offer your own possible scenarios.
ANZ
NDO Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
