Hey Wassa, I am a little surprised by RMS move, but.... I think it shows that RMS simply has to secure more high grade ounces, now that the clock is ticking on Penny. Plus, the U/G operations at Mt Magnet that are going to see a huge amount of capex in the years to come, are clearly more capital intensive than MGVs high strip open pits. My main worry is that WGX is going to attempt to outbid RMS. I think it a pointless exercise, because... RMS have the cash, they have the better reputation (past performance has been better) and their script is move valuable, which ironically means they are able to simply outbid WGX. It's a shame, as I understand why WGX made the move.
I have no doubt, WGX and their whole team are quite frustrated, as they basically had MGV with almost 20% of the company, yet they sold it all (for a profit, sure). Not sure if you noticed, but WGX just last week sold down some of their AME holdings. So they are off the table. Only GCY left. Though.... I am not sure WB will have the stomach for GCY. Probably best to just double down on their internal assets and keep tweaking the mine plan.
RMS offer is quite.... a small premium to WGX really, but then... I still view MGV script as overvalued.
WGX Price at posting:
$1.44 Sentiment: Hold Disclosure: Held
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