ROGFF - Roxgold: Fortuna Silver Tanks After Acquisition But The Market Has It Wrong
- The market hasn't reacted kindly to this acquisition as FSM has declined almost 23% since the announcement. This has resulted in only an 8% increase in ROGFF.
- Most investors are uniformed and aren't aware of the Roxgold story and the exceptional value that it brings to the table.
- I think Séguéla's NPV will be well north of $500 million soon, which will easily support a $1 billion valuation for these assets.
- FSM was still getting ROGFF at a 20-25% discount to NPV when it offered the 42.1% premium to last Friday's close. If you look at the structure of the deal, it's also apparent that FSM is not overpaying.
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Roxgold: Fortuna Silver Tanks After Acquisition, But The Market Has It Wrong