"Talking to Simon today at the Gold conference re RMS he came across that he really does not know what RMS’s real intentions are with their 18% SPR holding ..."
Calm, I have a theory. By my quick reckoning, RMS bought 198,530,331 SPR shares @ $0.905 (av) for $179.69m. For ease, let's say RMS bought 200m shares @ $0.90 for $180m. Let's now calculate the RMS unrealised capital gains as the SPR SP has increased from $0.90: SPR RMS ($/sh) ($m) $0.90 $180 $1.00 $200 (+$20) $1.10 $220 (+$40) $1.20 $240 (+$60) $1.30 $260 (+$80) $1.40 $280 (+$100)
For every $0.10 increase in the SPR SP, the RMS unrealised capital gain increases by $20m. This in turn is propping up both the RMS SP and, more importantly for M&A, the RMS:SPR SP Ratio.
RMS has put a Trojan Horse into Spartan!?
This explains why the RMS SP rose today in the absence of any RMS news. Seems the market has woken up?
SPR Price at posting:
$1.33 Sentiment: Hold Disclosure: Held
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