I have been watching the cross between RMS and WGX from the time of the MGV offer. RMS has gone from 2x to 1.8x to now 1.64x market cap of WGX yesterday 1.54xTODAY If as others suggested then entering a new index causing buying will narrow the differential further. Interestingly WGX is looking more like the other missing half of RMS,but with all the mining gear and innovative underground capability that RMS will need in around 2 yrs,or less,also it is not only duplicating RMS with a similar dividend policy,but also the similar stray corporate facility to match. I think when and as we see nearer a 1 to 1 parity that may make it interesting sooner rather than later.
IMHO - Always thought WGX's MGV offer was to force RMS to stump up instead of getting MGV's newly (2? months before) acquired southern tenements cheap for stray cash instead,which when they had to do so,they did by handing out dividend due shares as well. The extra shares and capital expended haven't been reflected in RMS's pro-rata market cap at all. In fact it weakened shareholders interests via dilution and gave away via dividend already earned profits tying up existing shareholders profit now spent on non producing assets 12 months plus out with development expenses also ahead at the time along with a future liability to pay the remainder on those acquired tenements sooner rather than later,for which little recent exploration has occurred. None of which improves RMS cash flow or adds to profits positively to counter shareholder dilution over the next 18mo. plus.
DYOR + DYODD in 12-mo the disparity in market Cap will be even less.IMHO W.B.if he is the hunter is not after SPR/GCY but something more significant,being OPERATING mills and nearby tenements creating a chain along the highway and the "Murchison will be mine " didn't he say tongue in cheek during a MGV offer pres/chat M.O.M.? WGX Around $3,50 is comparable market cap atm. A buck away
WGX Price at posting:
$2.46 Sentiment: Buy Disclosure: Held
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