LJ has more than enough experience I agree. Though... WGX has a 1300 strong workforce and already has Big Bell humming at 1mtpa+. So WGX has been pretty clear they were hunting for a deal that would play off their strengths = U/G mining.
In the end, Karora is basically reliant on 1 large U/G mine... operational risk is huge and... a merged entity will reduce that risk (the big end of town clearly prefer that, as the board of KRR would have first asked them).
I have been so focused on the smaller acquisitions that WGX could have made, that I have neglected the larger potential deals (especially ones not listed on the ASX). I think KRRs assets are fine and I do think that the current 400k p.a profile they are stating is just a entrée. Wait until later in 2024 and we will see them start to put out the real growth plans (for the merged entity). I am sure WGX is still fully capable of stitching together smaller deals with it's neighbors if need be, but that is unlikely in the very near term.
July onwards, I think it is likely we will see a move to sure up the Bluebird plant feed sources.
I note that both KRR and WGX has average quarters, which I think helps with the general agreement about value (neither company will be able to please everyone, but.. with both WGX and KRR having very high % of institutional investors on board, this looks like a deal that is well supported).
POG makes everything a little more interesting of course! As WGX has more leverage to the upside with KRR having lower costs.
I guess the more I read, the more confident I am in WBs decision making.
WGX Price at posting:
$2.31 Sentiment: Hold Disclosure: Held
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