While just about every mining analyst in Canada has outlined various strategies for optimizing returns from the outcome of Lac Minerals’ appeal of a court decision awarding the Page-Williams Hemlo gold mine to International Corona Resources, we know of only one securities firm that has come out and picked a winner.
Most analysts have outlined a variety of scenarios and given investors a choice of which to follow: the decision is overturned, a retrial is orderd, the decision is upheld but the settlement is changed or the decision and settlement are both upheld.
Alfred Bunting & Co., however, has flatly stated: “International Corona’s case is strong and … it is most likely that the original decision of Judge Holland will be upheld.” The securities firm’s analysts go on to say that transfer of the property’s ownership is the only “fair” solution but says Corona might be ordered to pay Lac $204 million instead of $154 million for Lac’s cost of building the mine.
Bunting also recommends hedging its bets — no one is putting all their eggs in one basket on this lawsuit — but says it recommends “overweighting International Corona (or Teck) relative to Lac.”
Be the first to comment on "Bunting picks Corona"