Aurelia Metals strikes gold with $200m M&A deal, raising, page-73

The five-point strategic rationale for this pretty unconvincing in my opinion.

Points 1 - 4 are really just about changing AMI's positioning in the market. Investors could get a similar result by adjusting their own portfolio's if they wanted it. Plainly with all this talk of 're-rating' and 'mid-tier' they are hoping larger portfolio managers will be interested. I doubt it. I feel it increases risk to the share price. If it does not go well in the next year, management could be seen as d***-swinging, overly acquisitive, capital destroyers. Also, the contractual relationship with PYBAR looks pretty complicated - not a good sign.

Point 5 is the only one that makes sense, but it's the last point! We won't know until revised guidance in Q3 FY2021 and exploration results whether that is working out.

So I reckon if the price is stable or higher, it's an immediate sell. Can come back in six months if things pan out.

If it tanks hard it might be a buy.

If it's in between, it's disappointing. Why they couldn't just focus on what was their plate and enjoy unhedged production, a rising gold price and Federation in the works... I have no idea.