I appreciate it has been a while since I have posted here, and I am bumping my own post.
I have a nominal holding after selling everything at break even after a 9 month hold (break even was around $2.40).
OBM were about $0.053c when I posted that, and they have come down another 50% since then and are still at $0.026c today, with a market cap of about $35m.
They still have the ~$300m in tax credits, and RRL seem like they are not getting out of the hole they (and the rest of the market) are in.
Acquire the company with an all stock offer, use the tax credits to offset the buyout of the hedges, bank an extra 25,000 ounces.
The share price would be back above $2.50 and there would be plenty of money to fund McPs - whenever that goes ahead.
RRL has bounced off $1.70 4 times now, but I have been reluctant to buy back in in a meaningful way after multiple quarterlies where there is some excuse.
As per above, a significant change in the company's fortunes can achieved with almost zero dollar outlay, and this would provide the company with significant holdings in a highly prospective district.
Until management start to do more than "wait and see", I will struggle to be an evangelist of them.
(20min delay)