Thanks for pointing out this discrepancy, even though it has...

Thanks for pointing out this discrepancy, even though it has closed up a bit from your first post its an interesting example of an imperfect market. As I hold both BTR and AME I agree that the logic in the merger is still sound losing one entire set of management and board to manage a larger amount of ground and more ounces in the ground.

After receiving the letter to AME holders on the 7th Nov (the Supplementary Disclosure) this reminded me that maybe the market is pricing in an almost certain merger, no execution or FIRB risk at all, with AME and BTR holders generally aligned. So besides the ASX being a bit of a wet blanket whats going on here? I think the arbitrage or discrepancy can be explained away by post merger risks and in particular the finance, and this is the markets way of pricing in that management do something stupid and give all the upside away to Ocean Partners either in gold price hedging or the cost of finance, or some other sort of execution risk on the operational front and there the obvious one is being unable to find a suitable toll treatment mill in the Eastern Goldfields, either by all the mills being stuffed full of other peoples gold ore because of the high gold price, or the inability to come to commercial terms. The higher the AUD gold price goes the more power that existing operating mills have, as newcomers and stranded restart gold sources without mills all compete for toll mill capacity.