The article has it back to front.
Vault wants to acquire GMD not the other way around.
That's why the share prices of VAU is below value and GMD above value.
On fundamentals GMD should not have almost twice the enterprise value of of VAU as GMD has some serious capex in front of it in regards to Tower Hill.
On the other hand VAU has to just wait out the hedging and stripping an it will be making a pile of cash.
Their intentions however are clear - they want to merge with GMD. Note the comment on page 12 of the presentation on the 11th November.
It is this uncertainty (or inside information) that is keeping the VAU low.
VAU did not have a poor quarter - it met expectations and
@ozboypete the Indicated and Inferred Resources at Daisy is at record highs so Mt Monger is not running out of reserves. I've been in SLR for almost ten years and I hear that crap all the time from down rampers.
Tonkin is definitely holding the company back by not bringing Cock Eyed Bob and Sugar Zone into production. That would push production closer to 500,000 ounces. With gold at $4,000 an ounce there is no reason to justify in holding production back.
While I think there are definitely operational synergies with GMD there is no way VAU shareholders should pay twice the value of VAU to get it. Especially when the Leonora mill is only 1.4Mtpa and KOTH mill is soon to be 6Mtpa or four times bigger. A lot of cost savings could be made if ore from Gwalia was just tipped into the KOTH mill as it's only 25km away.
GLTA/IMHO
(20min delay)