IKN

More matter with less art

I was expecting more reaction from the Continental Gold (CNL.to) share price today…

…after it came out with its NR at midday today, but as things turned out the reaction was rather subdued.
 
Just a couple of pennies added from its lows and a close under $2.00. We noted on Monday that it may come under pressure due to the Newcorpse deal, what with Newmont (NEM) the partner at Buriticá and its well-documented (and justified) nerves about the project. Sure enough that happened, but even when Ari Sussman came out today with…
“Ari Sussman, Chief Executive Officer of
the Company, stated: “Yesterday, the Company received numerous queries
of concern from our shareholders questioning whether our largest
shareholder, Newmont Mining, would remain engaged with Continental Gold
after its merger with Goldcorp. Newmont has unequivocally confirmed that
it ‘remains supportive of Continental and the continued development of
the Buriticá project’.””
…there was little in the way of rebound. Perhaps because people are cottoning on to the way he finely crafts his sentences in pure legalese so they always sound like one thing but mean another. After all,  consider a couple of different angles to that statement above:
  • By “remain engaged”, do we mean happy to fund future capex, or just hold the shares it already owns? Does it mean “keep the directors on the board”, because the alternative to that one would be particularly dire. Fact is, it would be very difficult for NEM not to be “engaged with Continental Gold” after the merger. And by the way, what does “after” mean here, too? A day? A year?
  • A confirmation from Newmont yes fine, but from who in Newmont? Goldberg? The board? Or maybe just maybe a country office level in NEM? 
  • Switching gears slightly, if you rang up a person, company, insto or entity of any shape or form that happens to hold 19.9% of your company shares then asked them if they support the company, take a wild guess as to what reply you’d receive. After all, the art of the attorney at law is to ask questions to which you already know the answer, is it not?
So perhaps CNL didn’t react because the market is bored with the same old blather from CNL. But hey, WTFDIK, it might zoom 30% tomorrow morning.

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