Rio buying AJM is a much less riskier option than developing Jadar. Even if Jadar resource is much bigger than AJM’s. It will derisk Rio entering a new market:
1) Buying an existing operator is often cheaper than building a project yourself. And quicker. And de-risked as you will have full insight into their data through a data room.
2) Once they have established a foothold in the market through the acquisition, it will give them the corporate IP (intellectual property) in developing a deposit (Jadar) themselves.
AJM Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
