Well, I guess you could say the writing was on the wall with this one — Nevsun (NSU) just recently received an all-cash takeover offer from Zijin Mining at C$6.00/share, valuing the company at C$1.86 billion ($1.41 billion).
Coincidentally enough, for anyone who has read my latest eBook, Mining Stocks – Investing In A Bear Market, you’ll know that at the top of my list of things that I like, it’s World Class Tier 1 assets (like the Timok Copper Project that Nevsun owns).
Unfortunately for me, I sold out of my shares of NSU awhile back (in hindsight, over very stupid reasons), so I wasn’t able to benefit from Zijin’s most generous offer…
I last purchased shares of NSU way back around August 2017.
Just over a year ago, I purchased shares of NSU for $2.06/share and the stock closed today’s session at $4.42/share (~C$5.82/share).
Here’s a 1 year share price performance chart for NSU.
Shares of NSU are up an impressive 97.32% over the last year.
And this is EXACTLY why I like takeover candidates (World Class Tier 1 assets certainly qualify as likely takeover targets) so much!
Sure, the wait can be “boring as fuck”, particularly with well advanced projects like Timok (“beta” plays) but as they often say, in the Game of Speculation it’s all about, “buy right and sit tight“.
I didn’t get to reap ANY rewards because I wasn’t patient enough…
Go figure, this isn’t the first time I’ve sold out of a QUALITY company far too early!
But again, this recent headline involving Nevsun goes to show just how valuable/coveted World Class Tier 1 assets really are… Quite frankly, NOT that many of them exist on the planet, so anytime you can snatch up shares at 52 week lows, it’s usually not a bad idea…
I don’t care if we’re talking about: mining stocks, real estate, basketball players, etc.
Lesson learned (again)… I hope this datapoint will come in handy for readers and myself.