First today from Bloomberg :
Brazilian billionaire Eike Batista is
no longer one of the world’s 100 richest people
http://www.bloomberg.com/news/2013-02-07/brazilian-batista-drops-from-world-s-100-richest-ranking.htmlNow Oldtimer post a few weels back:
Alas, Mr. Batista has suffered his share of business difficulties of late. Iron and coal prices have been “volatile” and oil production from his oil assets has been disappointing. Worse, the prices of the shares of his publicly-traded companies have imploded, which creates significant difficulty with respect to raising the massive funds required to fund a large gold exploration program and follow-on gold production facility.
Additionally, few items improve one’s ability to raise funds compared with ownership of a “multi-million ounce proven reserve” and Mr. Batista could legitimately claim as much with Eco Oro in hand.
Better still, Eco Oro could provide a larger range of viable processing/production sites (which are not terribly visible in Batista’s current properties, particularly when the new water park is taken into consideration). EOM might also provide a less expensive initial underground production mine site (accessing his current known deposits appears to offer plenty of “challenges” due to depth, topography and local hydrology). Additionally, Eco Oro’s treasury contains a useful $25.0 M in cash
.......suffice to say that without Eco Oro, Batista might come to be viewed as having accomplished precious little in terms of his goal of “consolidating the area”. Worse, concerns that other large mining interests might grab EOM would no doubt lead to sleepless nights (keeping in mind that irrespective of its potential, the area will likely support but one large production facility). EOM’s share price will not stay at current discounted prices, hence Mr. Batista will likely bid in the near term.