You are dreaming to have cash distributed to shareholders. Any...

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Fangk

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12/05/23

12:17

Post #: 67741954
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Originally posted by Findsomegold: ↑

Nice analysis guys. My two cents worth in comparing which company will make me better off as a SBM shareholder i.e. where I will get a better return over the next 2 to 5 years (and of course its only my view and not financial advice):

1. the industrial logic of the GMD offer is clear - Ulysses ore to Gwalia mill takes the pressure off the Gwalia u/g to allow quality mining and improved grades while adding the 80% interest in the Mt Morgan's mill to mine the bulk open pits like Tower Hill - is compelling

2. backsolving GMD current valuation is tricky and probably has some premium baked in for the team's track record - in effect getting paid before you do the job

3. SLR share price over the last 2 years is down 40% (in a strongly rising gold price) which doesn't fill me with confidence that I will be better off over the next 2 years if I back the steady as she goes option (especially given SLR has no synergies to Gwalia - except for Luke Tonkin having history as CEO of Sons of Gwalia - which by the way failed)

4. personally I would prefer the cash being offered (by both parties) - to be given to shareholders i.e. not given to SBM board and directors to continue throwing down holes in PNG and Canada. Lets put those assets into administration and distribute the remaining cents in the dollar to shareholders as well

So I am team GMD - I think backing a stellar management team with a demonstrated industrial logic will easily win the day for me as a shareholder

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You are dreaming to have cash distributed to shareholders. Any cash from the deal will be wasted by this board. I'll take SLR anyday. Anyway, I think it's unlikely that GMD will raise their offer, because RF has had the cash in pocket and now he can turn to any other games. TO Leonora is prabably just an excuse to suck in the doughs.

SBM Price at posting: 64.0¢ Sentiment: Hold Disclosure: Held
4 Upvote

1 Great analysis

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