Ann: September 2023 Quarterly Activities Report, page-38

You make a good case for a merger, cannot deny that.
I have had to watch SLR due to all it's 'fun' with GMD over recent months, and.... it has really struggled, I mean, even more than most other producers.
I cannot quite articulate exactly what I am trying to say, other than the market seems... to dislike SLRs recent decisions. If SLR had not been so stubborn about Gwalia, they perhaps could have attained 20% of RED at lower prices, but... did not. Ego is clearly an issue (sure, its always an issue).

The big end of town would probably look favourably at a deal overall, as you say, RED and SLR have strengths and weaknesses and could benefit from each other. A merged entity would also have a lot more firepower (cash/debt borrowing) to undertake further corporate action (though off the top of my head, no targets come to mind).

The tax losses, cash pile and ability to remove the hedging all together, are some big carrots.

I guess my main thought is... SLR is not here for a Merger/TO, but just to squeeze GMD a little.

Slightly off topic, but.. not so long ago, RED had some exploration updates regarding other potential open pits near to KOTH, yet... from memory, they seem to have disappeared from the companies announcements..? RED invested quite a bit in the years coming to and during the KOTH build.
To be fair their main focus is likely on Darlot & KOTH in the short term.



In the end though, I think it will still be GMD who acquires RED. The Tower Hill asset they picked up... could massively high grade KOTH for many years (let alone all of the Gwalia ore, which could be sent north if they just shut down the Gwalia plant).
GMD seem to be able to walk on water.