It is not a fundamental or structural issue,just a pushout of production.
NAL is about 50% percent oil and 50% gas. Natural gas assets have very low these days, so I think it is a good price.
They did have a very good quarter. [br]It’s probably one of the best stories out there.
We would argue that if you used the strip price for finding that value it would be a lot lower than what they’ve presented.
The risk for Anderson is exactly what happened with Rock Energy, where you put yourself up for sale and then you find out there are interested companies but they’re not in a mood to pay up - why would they? - and you may not be able to get the value you’re hoping for. And then what do you do?
Right now we’re short of the stuff. About 14 percent of the world’s supply of uranium comes from dismantling of Soviet weapons.[br][br]That program stops at the end of 2013. So there goes 14 percent of the world’s supply.
Has one of the best project pipelines of any precious metal producer.
This is the second of two significant regulatory approvals, following Investment Canada Act approval last week, and further derisks the deal, with Grande Cache’s share price moving closer to the $10 per share all-cash offer.
They’re a very low-cost producer.[br][br]They are definately lower quartile as far as operating costs are concerned.
Domtar increased its share buyback limit to $1-billion in December 2011, and remained active under the plan; at year-end, the share count was just 36.8 million, down from 37.8 million at the end of Q3.
That’s where the pressure is going to be to do something that leads to more M&A.
They (ARC) don’t come out and say that but just based on the fact a number of other companies have gone that way, that’s quite possible.
The focus is on Shaunavon because there are lots of medium gravity crude oil down there lots of opportunity to add oil production using new drilling technology and water floods.
This is very good news in terms of Ivanhoe being taken over by Rio, it makes it a lot easier for Rio or anyone else.[br]
They’re predicting a 10 per cent increase in production this year but, in terms of cash flow, a portion of that is going to be offset by more shares outstanding.
Should make it easy for Mountain Provice itself to get taken over.
What’s remarkable here is that the company gets 85 per cent smaller and 25 per cent more valuable.
We continue to think that the company’s balance sheet is over-levered and we expect that a dilutive equity financing will be necessary to address its unbalanced capitalization.
The pricing looks low compared with the net asset value of the company.[br][br]The market is thinking there will be another bid.
I see Quadra FNX as a company the market has perceived as a serial disappointer and its depressed the price of Quadra FNX’s shares to a remarkable extent.[br][br]I can see just over C$28 worth of value in the company, so my belief is that this is the beginning of a bidding war.