It's all a very good reminder & refresher. I have some notes and numbers on past takeouts, and to be honest, Arequipa is the worst example for SLI share price I have, but then again, this was back in 1996, and the avg gold price during this takeout was approx $400 per OZ, less than a quarter of today.
Here's the bottom line (all approx #) of the deal:
- Barrick paid $1 Billion in 1996
- Arequipa had 5 Million OZ of gold
- They paid approx $200 per OZ in the ground (WOW, think my $150 per OZ is low?)
- Arequipa had approx 33.3 Million shares outstanding
- Arequipa shareholders got $30 per share (or a combination of cash & shares)
The SLI equivalent (based on shares) would be approx $8.69 per share, 1996 prices. Gold is over 4 times higher now, so everyone can guess for themselves, the equivalent share price today.
It seems very possible, that we will prove up more than 5 Million OZ, then we'll see what 2011, or 2012 pricing does at that time. It still amazes me, that so many people will wait on the sidelines, till they have absolute proof with the assays, (even with all the homework & DD out there) and then pay whatever the Market Price is. Between Tesoro & Vilcoro, as Sculpin mentioned the other day, you'd sure think we'd end up with these kind of OZ, minimum?
