Cruch time...., page-298

"Ridiculous".
Maybe Dim there's another lens to look at this through.
Perhaps these recent events could be considered smart plays by both MZ and SL
Could we soon be seeing a Spartan riding upon a golden horse.
Pragmatic operators like MZ & SL probably understand that a merger with synergies often means 1 + 1 = 3.
Since Mt Magnet update, RMS market cap has taken a rather large hit (35%).
Think about it this way, RMS shareholders will be much more willing to support a merger now that Mt Magnet's warts have been exposed for the world to see.

Now let's break this down even further.
1. Why would Simon mention a 2-year production time frame? Could this create an undeniable carrot for SPR holders to accept a merger presuming that RMS will 100% be able to utilise Dalgaranga's mill immediately processing (aka monetising) 3mt stockpiled ore.
2. Why would MZ release a 17-year LOM? Is it to show the market Mt Magnet will still be mill constrained even after mill upgrades? Conventional mining wisdom suggests a 10 year mine plan (infrastructure adjusted to suit mineral inventory size) is the most optimal strategy. Leaving a large drop off in ounces from FY27 potentially softens RMS holders into accepting the prospect of a merger to fill in the glaring production gaps.

Why does 1 + 1 = 3?

Let's look at the 2 companies individually and collectively.

SPR Market Cap $2,050,000,000
RMS Market Cap $2,540,000,000
Combined $4,590,000,000

SPR Liquids $252,110,000 (minus 20 million estimated expenses for Mar Q)
RMS Liquids $1,059,060,000 (adding 150m cash build for Mar Q and SPR share value 254,600,000 * $1.60)
Combined $1,311,170,000

SPR trade payables - receivables plus Interest-bearing debt $13,338,000
RMS trade payables - receivables plus interest bearing debt $52,466,000
Combined $65,804,000

Enterprise Value
SPR $1,811,228,000
RMS $1,533,406,000
Combined $3,344,634,000

RMS Mineral Resource Inventory 8,700,000 (EV to Resource $176)
SPR Mineral Resource Inventory 3,151,700 (Ev to Resource $574)
Combined Mineral Resource Inventory 11,851,700 (Ev to Resource $282)

Now let's compare the merged entity with both RMS/SPR and its peers.

EV



EV/Resource



EV/Reserve



I meant to post this earlier today