Good News & Bad News, page-28598

Agree Sunny, but I do think PLS should be looking to acquire something a.s.a.p.

I believe a very good use of their funds (maybe scrip + cash offer) would be to take over CXO immediately.

They could get it for say A$3 - 3.5 Billion or about $1.80 - $2 per share.

This will yield a Billion dollars in revenue (at current spod prices) in 24/25 and give PLS a 25 - 30% ROI.

Pretty good metrics. CXO has a 20 year mine life now, soon to be double that, or alternatively double production at 20+ years.

It would be quite a complimentary acquisition and they can run the company from Perth with a few key managers on site in Darwin.

It makes a lot of sense.

As a PLS and CXO holder, I would be very satisfied with swapping my CXO shares at a premium for a bunch of PLS shares (or a combo of PLS shares and cash).

To me this tie up makes more sense than say a PMT - even though I see PMT as a nice one to have in the long term and would give geographical diversity, why not take the cash producing asset in the NT now and still look at a PMT or similar down the track a bit?.

The above may be wishful thinking on my part but I think it makes perfect sense.