Ann: RMS: Ramelius Takeover Offer for Explaurum Ltd Presentation, page-48

First 48 Last

Share
Profile

Follow
Davisite

18,885 Posts.

5575

11/09/18

07:53

Post #: 35510165
Share

Originally posted by smartdude ↑

Although I am an RMS shareholder so am going to limit myself to this single post on this forum (hopefully) I suggest you consider the state of play.

Hartleys have modelled $55m in additional equity required to enable the project finance to get granted. No financier will fund all of the project so a significant CR is on the cards if the co goes it alone.

A capital raising will materially dilute existing shareholders. Your current % holding in the co. will over halve after a CR. The instos “that will not budge” have a choice of getting a healthy return now, doubling their investment in a CR by putting their hands into their pockets or halving their equity by not participating in a CR. Is this a better option than acquiring a 20% position in the expanded RMS?

I will be extremely surprised if the large shareholders do not accept the RMS offer.

Expand

I think the outcome is going to depend on how EXU's management respond and what they have up their sleeve. The big unknown at this stage is Mace - we don't have any information on the scale or cost to mine, nor at what stage the BFS is at. They may well have a very compelling case to stay independent.

One thing I think RMS have done wrong here is in being so dismissive towards the board and management of EXU. Mark and his team run the risk of making this personal and this is never good for the shareholders. I am hopeful sense will prevail and we get an outcome that is a win for all shareholders, but I do think this story has a long way to run yet.

EXU Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply