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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 uninformed 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.
more https://seekingalpha.com/article/4422346-roxgold-fortuna-silver-tanks-after-acquisition-market-wrong