Company News – Thu 21 Jun, 2018

Anaconda Executives Host Live Video Webcast to Discuss Benefits of Maritime Takeover Bid

Please click the link below to access the replay of the webcast that took place yesterday, June 20th.

The video webcast will consist of a formal presentation made by Dustin Angelo, President and Chief Executive Officer, Gordana Slepcev, Chief Operating Officer, and Rob Dufour, Chief Financial Officer. Following the presentation, there will be a question and answer period when shareholders of Maritime and other interested parties can submit questions directly to the senior executive team of Anaconda Mining.

Click here to watch the full recording.

I will also be chatting with Dustin later today so please send me any and all questions as soon as you can – Fleck@kereport.com

 


Comments:
  1. On June 21, 2018 at 9:31 pm,
    Excelsior says:

    (ANX) (ANXGF) Anaconda Mining Initiates Resource Expansion and Exploration Program at Point Rousse Project

    https://www.anacondamining.com/2018-06-20-Anaconda-Mining-Initiates-Resource-Expansion-and-Exploration-Program-at-Point-Rousse-Project

  2. On June 22, 2018 at 5:14 am,
    charles says:

    Hi Ex. –

    Was wondering what you are hearing over at CEO regarding the odds the acquisition passing with Maritime shareholders. Also, would you mind posting the link to the discussion board at CEO for Anaconda if there is one? I’d like to follow along on this one.

    • On June 22, 2018 at 6:05 am,
      Excelsior says:

      Hi Charles,

      It is interesting because initially some of the MAE shareholders were vocally opposed to the deal (because they really didn’t understand all the moving pieces from Anaconda or just how good of premium ANX was offering for those that tender their shares). Some of them were pretty delusional about how MAE would do on their own, or were miscalculating how much more money and time would be required by the current MAE team to even get Hammerdown into production.

      Now, reality may be setting in and it is more clear that the management team over at Anaconda is a superior team, they have the mill & processing center in place to actually provide a genuine path to production, and they are already proven producers that have done a fantastic jobs as a smaller Jr with more limited resources.

      As time has gone on and ANX has unpacked the synergies, better economics, and shorter time-frames on putting MAE assets into production, it seems investors are finally coming around and are more constructive on the merger. Of course, if the deal doesn’t go through the hold outs are going to be sorry, as Anaconda will just look at doing the same thing at other companies like Resource Capital Gold corp (RCG), and Maritime will have missed their shot at a perfect 1+1 = 3 symbiotic relationship and opportunity.

      In addition, the capital raises that MAE have done over the last year and then again after the announcement of this merger offer just continue to dilute their existing shareholders out of any value. This fact alone should tell current Maritime shareholders everything they need to know about how their current management team values shareholders. (ie… they don’t really care about crushing the value of their stock through dilution). The MAE team has turned very little of the capital raised into value, but instead are burning through most of the funds in G&A to line their own pockets. It is clearly time for a change and time to turn things over to a managment team with experience and a genuine path forward.

      According to Dustin in the video review posted by Cory up above it sounds like they don’t quite have 51% of the shares tendered yet, but anticipate many are just sitting waiting until the end.

      Why any Maritime shareholder would not want these 2 companies merged for all the synergies is a mystery, but I’ve tendered my MAE shares already, and agree with Dustin that investors should just get their shares tendered ahead of the July deadline so we can all move forward with the value creation.

      • On June 22, 2018 at 6:06 am,
        Excelsior says:

        Oh – here is the Anaconda room over at ceo if you want to scan up through the comments there:

        https://ceo.ca/anx

  3. On June 22, 2018 at 7:50 am,
    Charles says:

    Thanks for both posts Excelsior! Any Maritime shareholder that doesn’t see they are being snookered by current management are crazy. It should be night and day for them. It continues to amaze me how some of these miner management teams are abusive to shareholders and shareholders just go along with it. Do you rbelieve that if the deal goes through, that the deal will not be at all dilutive to existing shareholders of ANX as Justin has indicated? I’d like to pick up more shares and trying to decide if I should pick them up now or after the Maritime shareholders approve.

    • On June 22, 2018 at 8:33 am,
      Excelsior says:

      Agreed Charles – many investors love to stay in negative relationships with bad management teams, like people tend to stay in negative/abusive relationships because they think it will get better over time, and not worse.

      If the deal doesn’t go through, I believe Maritime shareholders will struggle for a long time afterwards, and they are clueless if they don’t tender their shares and accept the offer on the table from Anaconda.

      As for Anaconda, the combined assets are worth the candle and the larger company with a bigger growth profile will put them on more investors radar. Look at their valuation versus the bloated Atlantic Gold valuation at this point. Anaconda could become the next Atlantic Gold, and the production from Maritimes Hammerdown, will generate the revenues to put ANX’s Goldboro into production years out. Their strategy makes all the sense in the world.

      If the deal doesn’t go through, Anaconda will still do well, and again, they’d likely just shift the same strategy over to RCG Resource Capital Gold Corp instead.

      Either way they’ll be growing their reserves and production profile through acquisition, good exploration, and improved mining metrics. In addition, they have plenty of exploration they can do on their own properties to bring them forward.

      • On June 22, 2018 at 8:39 am,
        Excelsior says:

        As for what to do at present, I have no idea what I’d do if I didn’t have a position in either one. My inclination would be to buy Maritime for the arbitrage, but it is risky if the deal doesn’t go through. Picking up Anaconda is the safer bet, and if the deal goes through it may surge afterwards. At this point there aren’t that many investors following the story so it is an unknown.

        It really will take until the July until there is more clarity on the deal for the stocks to move, but the outcome will shape that move. I expect ANX to do fine either way, but could move higher on good news. MAE could move really higher if the deal goes through, or get squashed if the deal doesn’t go through.

        Personally I’ve traded around my core ANX position since the summer last year and have nice gains locked in already so I’m happy to be patient and let this play through. I picked up some Maritime shares when they made the announcement of the proposed merger to play the arbitrage, and have already tendered my shares over to the deal, so I’m waiting on those right now as well.

        Fun times!

  4. On June 22, 2018 at 10:06 am,
    Charles says:

    Thanks Ex. I already have a position that is in the Red currently, but am holding and thinking of averaging down. I am thinking of trading a small position I have in SA that I have a long term gain on and using the proceeds to buy some more ANX. Need to look at the charts of both and then decide.

    • On June 22, 2018 at 4:12 pm,
      Excelsior says:

      Yeah, I could see the rationale to do that because Seabridge is a large development stage project but more properly valued and won’t offer as much upside as a more highly torqued Jr company. SA is already near $700 Million market cap and ANX is more like $40 M.

      Of course ANX has a bit more risk involved than SA, but I’m expecting it to outperform over the next 2 years.

  5. On June 22, 2018 at 10:09 am,
    Charles says:

    Ex –

    Or maybe trade my GSV for ANX. I like GSV, but I’m at a loss on that one and won’t have to recognize a gain.

    • On June 22, 2018 at 4:15 pm,
      Excelsior says:

      Another option is to sell 1/2 of SA and 1/2 of GSV so the gain/loss may wash each other out to some degree, and then apply those funds to ANX, keep a bet on each horse.

      • On June 22, 2018 at 4:21 pm,
        Excelsior says:

        Then if you have nice returns in ANX you can always trim some of those and put them back into SA or GSV or another stock if they appear to have more value upside at that time.

  6. On June 22, 2018 at 5:11 pm,
    Charles says:

    Good thought. Thanks.