Yeah, 'it just doesn't feel right' captures it exactly. It looks desperate. They had to pay more in fees and dilution than Tropicana will yield over the period of McPhillamys construction. They also had no debt and hedging already in place, so they surely could have got some debt finance for McPhillamys.
The only real rationale in the documents is diversification:
So why do you want to diversify? Well, because you are worried about risks in the current portfolio and you are trying to minimize their impact. So I suspect there is some bad news coming shortly, possibly around:
- McPhillamys permitting or economics
- Duketon production or costs
(20min delay)