Blk's Wiluna operation has been hit by massive rainful. They originally flagged this in February, and March was worse. The production downgrade on 4th April by BLK was due to an amalgam of factors: fire, poor grades in the UG, but, most significantly, weather related interruptions. I know they are a few hundred kilometres apart, but could weather possibly depress RMS' Vivien and Mt Magnet operations and so hurt calendar Q1 results? Given RMS has't announced anything, this is unlikely to be major but it could mean that any posters looking at the top-end for production numbers could be disappointed. Any thoughts?
Question
Why doesn't RMS buy BLK? Market cap of BLK after the sell-off now only around A$150m for a potential 200k oz pa producer, while RMS has A$100 of cash to start with. And while BLK will inevitably see a cash bleed in Q1 due to its various problems, it still got a CR away just recently at 68 cents and so its balance sheet is pretty healthy.
There is a heated debate on the BLK thread over whether the Wiluna ramp up if inherently flawed or just suffering some inevitable hiccups (I tilt to the latter). But RMS certainly has the operational expertise in this area. And BLK's Wiluna and Matilda concessions have a lot of resource, which is RMS' Achilles heel. Any thoughts?
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