Fortunately, Simon seems to be a good negotiator and has skin in the game. A tie up with RMS does make sense for so many reasons, no wonder they have taken a stake. My guess is they have seen this from a long way out and so have been careful not to draw too much attention early on, and even attempted to talk down the asset through the media from time to time. No one wants to pay too much for an asset.
While I would have preferred SPR to go it alone, I can understand the approach Simon has taken if he sees the writing on the wall. Pushing the drill program is certainly one way to lift the share price in order to get the best deal. However, as we've seen, such an approach depends heavily on news flow, and when this slows down the share price falls leaving us vulnerable to a low ball TO. I can't help but think that a stronger narrative around production may have alleviated this, at least a little.
Still a lot to play out, but resigning myself to a TO at some point in the near future. If so, then RMS is a good option, they have done very well in recent years and have the expertise to monetise the asset, and from you're suggesting very quickly. So it is kind of a "win/win" situation, or maybe a "win more/ win less" situation? I would be a happy holder of some RMS script at least.
It will be very interesting to see how this plays out.
Let the games begin.......
SPR Price at posting:
$1.34 Sentiment: Buy Disclosure: Held
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