Interesting observations from Mines Online. The transaction is expensive when measured against reserves. To make the transaction closer to fair value (based on other transactions for gold reserves) a high degree of confidence is required in converting a large portion of the measured, indicated and inferred category into reserves. I guess they are confident but only time will tell and they see good exploration options.
I have been watching Regis for some time and was hopeful that McPhillamys would get the nod, that would have been my entry point (although the day before the acquisition I was toying with the idea of buying a few0. I sort feel that McPhillamys has been pushed out, getting all the appropriate permits is taking longer. Hence they moved for Tropicana.
Big call by the CEO and Board.
RRL Price at posting:
$3.17 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)