Dear readers and fellow investors,
yesterday we pointed out why we believe Minco Silver might see a takeover-offer soon. We like to compare it to T.ICI which indeed was taken over recently for 2.05$ in cash.
There are many similarities:
- both China
- both world class resource
- both cheap cash costs
- both have chinese people on board of directors
- both have trouble getting permits, as Chinas new leadership does not like Canadain companies to develop their resources
T.MSV, although nothing is sure yet, still offer nice upside on very limited risk. You may consider simply make a Stopp-Loss at 1.44$ then your downside is a maximum of approx 20% vs a possible gain on a takeover of more than 150%. Western Mining Group payed approx 250million $ for approx 2.2million oz of M&I Gold resource or approx 110$ per oz. If you`d apply the same metrics to a possible MSV- Fuwan price, that`s more than 150% upside on current price.
In Inter-Citic case, as you see below it was wise to not look at week Goldprice during that takeover speculation time. NYSEARCA: GLD vs. T.ICI commons
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