MGV clearly fits in very nicely with RMS’s truck and haul model....

MGV clearly fits in very nicely with RMS’s truck and haul model. RMS are good operators and will make it work nicely. However, I am not a big fan of RMS’s financial management. They have lost hundreds of $millions on hedging losses when Blind Freddy could see that the POG was going up and they are way too conservative in guarding their cash pile and therefore diluting shareholders when they do script takeovers.

Although RMS has chosen MGV as a suitable takeover target I believe that RXL at a sub $200m market cap is excellent value. I believe that RXL going it alone and taking Youanmi into production could easily 10 bag the share price or more. Lifting the Scoping Study POG assumption alone would add significantly to the existing NPV estimate and the new focus on lifting production ounces will create outstanding economics.