Figure It Out

There's so much value to be created in the mining industry if certain deals could just be made. Big royalty companies with low cost of capital buying out small or mid sized royalty companies with good assets and good generation programs. JV partners in awkward alliances with cross purpose incentives. But today I want to focus on adjacent projects.

It is often the case that two projects are right next to eachother. One or sometimes both of the projects need the other one. Yet, they are owned by two companies that can't come to terms. Dudes, quit arguing over who gets 60 and who gets 40 and FIGURE IT OUT.

I don't know what to do with these as an investor other than shake my head. You could try to figure out who the logical acquirer/acquieree would be and who would benefit most from figuring it out and invest in them. But then you have to wait potentially forever for a deal that may or may not ever happen.

B2 Gold and Aurion

Surge Copper & Imperial Metals

The Huckleberry mill is just sitting there on care and maintenance next to Surge Copper's deposits. The mill doesn't have enough deposits of its own to re-open. The deposits would be much more likely to go into production if they could just re-start an existing mill.

G Mining and Cabral

G mining is building the TZ mine. They have a CAD$500m plus market cap. If they issued 10% shares to acquire Cabral it would be a 100% premium to what Cabral currently trades at. It's cheap existing resource plus exploration upside.


It wouldn't be hard to add 100 other examples. Sometimes you end up figuring it out and have a Nevada Gold Mines. Other times you end up with a stalemate and everyone suffers. This is part of why mining is such a terrible business, because in any other industry logical deals would figure out a way to get done.