When your hunting a larger predator it pays to weaken them first. Is RMS weaker or stronger immediately after its takeover of MGV? I would say at least a year before any accrued value from acquired tenements is seen. If RMS AISC is still around $2k an ounce with falling production then comparatively WGX is getting stronger while existing RMS shareholders have been diluted and getting weaker with new MGVshareholders sharing in existing returns. Its $270m incash will immediately be reduced to $250 on completion of the takeover. From what I see RMS has future needs for its cash to keep producing. IMHO WB pushed or precuzzumped a planned cheap bid for the South Mt Magnet tenements.
Time will tell if I am right but it's worth looking at the WB interview concerning the RMS bid with the above thoughts in your mind. Look for the moment WB shed a faint momentary smile combined with a very sharp analysis of RMS and WGX complementary strengths and weaknesses.
Regards
WGX Price at posting:
$1.63 Sentiment: Buy Disclosure: Held
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