The problem now is that this bid puts an artificial cap on shareprice. Even if we get great newsflow between now and the vote, the shareprice is going nowhere.
Extremely cynical. The rationale for accepting the offer includes only one piece of new information which is "potentially higher capital costs".
Why not wait until the costs are known before recommending this bid? Indika obviously have this information already.
Every other reason posited in the announcement as reasons to accept the offer are inherent risks of deleloping a gold mine which shareholders surely accepted when they bought stock. Why would "uncertainty of gold price" suddenly be a reason to divest your gold project? Especially when consensus estimates forcast a long term bull market for gold. Makes no sense at all.
Very fishy.
NUS Price at posting:
34.0¢ Sentiment: None Disclosure: Held
