Hi
@Student,
Yes, i agree wrt the ML's and Branches and Solomon results.
NXM has had a very symbiotic relationship with NST (and previously SAR). In one of those videos i believe Andy states an "excellent relationship with NST". NST (and previously SAR) has shared plenty of data knowledge and even mine visits with NXM over the years.
I wouldn't rule out a cornerstone investment by them for a few reasons;
1. Holding a 19.9% interest (assuming they went all-in) means they wouldn't have to go into takeover mode immediately.
2. They would hold a blocking stake, making NXM unattractive to any other suitors.
3. NST have ~$740m in cash, bullion and investments.
4. They could achieve a cornerstone investment of 19.9% for less than $25m - 65m shares at say 35c would only set them back $22,750,000 and would fund another 2-3 quarters of aggressive drilling and exploration. There would still only be ~350m SOI, not bad for an exploration company that's been around for ~10 years (and who have never undertaken a capital reconstruction).
5. NST would probably take a position on the board, be privy to significant information and possibly be able to offer geological and other expertise.
It really makes sense to me that NXM's tenements, which completely surround NST, would be very attractive to NST. NXM and NST do have a very good relationship.
I tend to disagree though that the next CR will be completed at much higher price and, in the next quarter.
1. Who knows what markets will do in the next three months.
2. Imo a CR is a very real possibility before the next 5B is released (so sometime in July) based on the current spend.
Of course all this depends on results, other corporate activity, etc. etc.
All just speculation on my part and imo,
All the best,
Perdy
PS: Stand by the next time we go into halt!
