BRB 0.00% 47.5¢ breaker resources nl

I’m a little confused about people’s fixation on the whole cash...

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    I’m a little confused about people’s fixation on the whole cash aspect of this deal. Almost as if people believe RMS will go run straight to the casino and blow it on red. They certainly do not need that cash to pull them out of a bad position or anything of that nature.

    RMS will utilise that cash along with their own to bring Lake Roe into production, along with the Rebecca project which is just up the road. RMS have almost double the cash BRB have and they are a profitable producer so actually build on that position every quarter. BRB on the other hand will eat into that cash as they continue to plod along.

    Please do not think I am knocking BRB. You have a fantastic deposit and it looks promising. But building plants these days is extremely costly and debt is not cheap, especially in a rising rates environment - so there is an element of risk involved. The two projects combined, plus combined cash and backing of a positive cash flow has a lot of positives going for it. This deal is a no brainer for me and the only thing which honestly can be put into question is the BRB to RMS share offer. If they do not change a thing and this deal somehow goes through… I still see the RMS share price rising substantially due to the rising gold price and immediate effect that has on a current producer.

    Anyway, best of luck to all you BRB holders.
 
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