How does RMS get access to BRB's cash. It doesn't. It doesn't need to. BRB directors will authorise the expenditure of BRB's cash on the preliminaries for the final investment decision on the Lake Roe project. That FID is probably 6 months+ away. If, as Canaccord suggests in a recent research note, capex for a 3Mtpa plant at Lake Roe is $275m an entitlement issue in BRB of $100m+ will likely be undertaken. Before then BRB will be delisted for not meeting the 20% free float requirement. in the hope of securing a bonus payout.....will Goldman Sachs hold on through the BRB delisting, the rights issues and the Ramelius creep acquisitions of BRB shares?. I doubt it ...the brave GS souls who thought it was a good idea in March 2023 will have to defend their decision every month commencing with the fall in the BRB price post takeover ... and on every BRB corporate event and will likely have been relieved of the responsibility in good time and before Ramelius has to formalise the terms of its access to the BRB plant some time in 2029. I anticipate BRB shares will be delisted by June 2023. I re-iterate my expectation that the number of BRB holdouts - brave souls that they are- on the closing of the Ramelius offer, before XMAS 2023 will be three.
BRB Price at posting:
47.5¢ Sentiment: None Disclosure: Not Held
