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This is what I mean by an intriguing L2.
PS apparently production numbers come out sometime shortly, plus some happy news about Gramalote. I'm ignorant about all that, cos between the chart and the L2 and the new volume, I'm interested enough as it is. Tight stops of course.
I think the increased volume has been due to the Auryx transaction. Each auryx shareholder was given .23 of a BTO share in the deal which completed just a few weeks back. So I suspect that's where the heavy selling has come from. The heavy buying is probably due to the two brokerage upgrades and an Otto reco along with some others testing the waters on an undervalued gold play.
ReplyDeleteOut of curiosity, in a transaction like that, when the Auryx shares get cancelled and replaced with BTO shares, do they immediately count as a capital gain? Or do they stay safe til sold?
ReplyDeleteBTW... it was no Otto reccie.
Its not a capital gain until its been realized. ie converted to cash
ReplyDeletefrom SEDAR filed Info Circular. Bottomline, yes if Cdn it is possible to defer cap gain. I'm not a tax expert.
ReplyDelete======
Summary of Certain Canadian Federal Income Tax Considerations
For Canadian federal income tax purposes, an Auryx Shareholder who is resident in Canada for the purpose of the
Tax Act, who holds their Auryx Shares as capital property and who is an Eligible Holder generally should be
entitled to exchange their Auryx Shares for B2Gold Shares and cash under the Arrangement on a tax-deferred
rollover basis by making an appropriate Section 85 Election jointly with B2Gold. Such Auryx Shareholder who does
not make such Section 85 Election generally will realize a capital gain (or a capital loss) equal to the amount by
which the aggregate of the fair market value of the B2Gold Shares and cash received by the Auryx Shareholder
under the Arrangement exceeds (or is less than) the Auryx Shareholder’s adjusted cost base of the Auryx Shares and
any reasonable costs of disposition.