Yes , good to have drillers payed in shares ....still new shares being issued so still dilutionary (which needs to be remembered ) but less shock to the market to do it that way .
There is an assumption that BRB share price will rise ...I've bought some so I've obviously backed that likelyhood but not a certainty .
Poor old GOR got hit by the GFC and if the tide of the market turns against you it's difficult even for a very good stock such as GOR was / is .It was to my advantage to exit 7 years back despite the company adding a lot of resource over that time .
A merger with a cashed up producer, obviously would need a good premium to entice BRB management , would reduce longer term risk of raisings in a negative market environment .
You can't always just assume the most favourable scenario !
I'm not saying it should happen ,the devils in the detail , only that nothing should be rejected out of hand as a possibility and that there would be benefits .
BRB Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
