Best offer discussion:I am delighted to see BRB valued at 12% of...

Best offer discussion:

I am delighted to see BRB valued at 12% of a top ten producer. That is a fair offer if you do not focus on the metrics they had to include in the offer document. The offer is in Q1 2023 but what will that valuation look like in Q1 of 2026? The reason this question is important is because it is vital to understand development and funding risk. You may think you understand that but only some of you truly do, a very complex subject.

I have been writing a newsletter on investment and gold for 17 years now and have never seen the dynamics look as good as they do now. It is as if all my work over the years has found its mark. I stopped promoting in 2013 and only posted one more article on the WWW in 2014 as I saw my peers off the mark. My predictions have come to pass over time which is vital. I wanted to spend all my time researching not helping to run a site and assisting 300 clients at once. It was too draining to do both. I am glad I made that move. My site is deliberately run down as my wealth grows from real investment expertise and analysis. I do not seek new clients, but I do value those that are still with me nearly a decade later, or new ones that come along occasionally.

What was that study?
Investment markets (mechanisms and psychology), asset classes (phases and dynamics of each),monetary history (led to the monetary present and future), control of banking (led far wider than I expected), the roleof gold in the banking system, how banks work (credit creation and balance sheet facts), how money creation works under central banking, the dynamics ofcredit (cycles, drivers, restrictions), the difference between money and credit (that people do not understand well), the Australian mining sector (ongoing), geology (basics but a fair understanding and ongoing study),mine economics in fluid markets, processing methods (various), exploration methods and the changes that brings to the modern world, and leaders in the mining sector.

Then there was the technical side regarding charting and risk management of capital. Risk management of capital led to the development of a framework for investors based on quantum theory. Technical study leads to increasing understanding and is ongoing as a fascination across multiple time frames.

So I know nothing, because I know a lot, and understand how much I still need to know (ref. Dunning Kruger). Gold looks fantastic. It is breaking free of the control of the central banking system under a new multi-polar world order under my current thesis and increasing certainty. A basic study of chart history on gold led me to develop a harmonic model and to study the mathematical ratios on gold bulls of the past.

Gold and RMS upside
Fundamentals and technicals now align for gold. 1970 gold was $34/oz and it ran to $850 in January 1980 in this dying system. That is 25x think about that. From 1970 to December 1974 the rally was to $200 or 8x as phase 1. We saw gold rise from $250 to $1921 from 2001 to 2011 or 7.7x under the first breaking phase of this monetary system. $250 x 25 is $6250. That target stands if the current system holds together and all the evidence points to the very strong probability that it is already shattered. The BRICS+++ are making their move which points to the thesis that the Old Guard have already lost control. What will gold go to in the new emerging system?

Producers will be massive winners in the first stage of this scenario. The large projects (rare - BRB not one yet and lots of time and money needed to achieve that IF it is so at Bombora) are already moving with producers. Only later do the smaller producers and explorers move (rising tide lifts all boats) and finally new gold start-ups with moose pasture. There are quite a few gold companies with 2Moz in Resources or more, and many spread across multiple deposits and even projects - that will move later. BRB was un-recognised, and would have remained so for perhaps a couple of years yet - despite the in-ground value and potential.

But lets say RMS continues to build and produce and explore on their excellent ground positions into a gold price at +$5k US per oz. Their profit levels will scream higher as rising costs fail to keep pace with rising gold. Their share price will scream through $5 as a very conservative figure over the next two years. That values the BRB holding at $560M. That is because of what Peter demanded from RMS for shareholders = an ALL SCRIPT OFFER.

The non cash metric for this is $56M at the start point increasing to $500M+ at what ever point BRB would have had cash left (I am being conservative at -$60M still in the bank which is not probable at all) and debt (to complete studies, find an additional deposit, secure funding, build a mill and commission etc) being paid down and perhaps a forced hedge position along with other challenges mining brings. You might as well call the "valuation" of BRB - as based on 12% of a top ten producer - to be $560M. Deduct risk after that time spent at an RMS share price of $5 which is only double the sentiment high of only a couple of years back.

I have been a strong supporter of BRB and even wrote that report last year. The market refused to mark the value of this deposit and all that work by Tom and the team to the real value. The value of the RMS offer is NOT $130M (- cash) or 40cps or a 40% premium.

The value of the offer is along the lines I am trying to explain in more complex terms. Tom and the team created this led by Tom who benefits the most. Peter made the share price rise and RMS will make Toms dream at Bombora a reality. My research has been vindicated with this deal; and I am so pleased a top ten producer saw the value, for them (quite specific at this stage) and valued BRB at 12+% of their already operational and successful enterprise.

While on site, a leading gold analyst told me that BRB would be taken out at 3x the then value of 17cps. I said I hoped not. BRB is already 3x and connected to a PRODUCER so the offer is rising all the time. This is a WIN WIN for RMS get this fantastic ground position that will yield so much in the coming decades.

So we have this offer in a rising gold market with recovering sentiment, joined by masses of new investors into this asset class segment, my wet dreams have come to reality. We have been offered so much more than 3x. Within 3 months the offer could be worth $1+ so just think about that. This is why I am in favor and share this on my Sunday morning out of passion and intense interest in this investment game.

I hope this helps; CW (Neil)

There is a lot of stress apparent here and my aim is to settle that and awaken some to the reality of this situation we find ourselves in here. It seems, as evidenced by the share price, that Peter has done us all a great service. Tom loses the excitement of exploring this ground and that must hurt and I feel for him. He created it after all. Yet he listed this as a public company and the greater good seems to be served by this offer of 1 RMS share for every 2.82 BRB shares you own. That is the offer. I am not screaming at Tom here as I do respect him. The emphasis is for effect, that this is the primary fact of this post. The structure of the offer makes the offer FINAL and fair. It is NOT 40cps or +40% premium on VRAP and an explorer is not a producer either.