Thank you CW you now have my attention.IMO RMS will want 100% of...

First 61 Last

Share
Profile

Follow
paulb7

232 Posts.

40

17/04/23

23:49

Post #: 67322240
Share

Originally posted by Countrywriter: ↑

The APOLLO offer from RMS was at 1/2 RMS shares compared to the BRB offer.
They got 0.1778 shares for every Apollo share and market dynamics were not as harsh back then - but were changing ahead of rising interest rates. Factor that please. 2.82 BRB shares for 1 RMS share equates to 0.3546 RMS shares for every BRB share you own.
Compare apples to apples.

The 34cps included never factored into a later benefit as it closed at the time of closing of the takeover. Yes it did sweeten the deal.

There is an outside chance of a higher offer as the ground position BRB has is valuable and more valuable in a rising gold market.
The fundamentals of the market have gained since they made the offer. It will depend on how RMS view the ground position.

IF there is another offer it is likely to be a cash component, as RMS is generating more cash all the time. It would not greatly hurt RMS IMO. That is the area they may have factored in testing the market with this initial offer. Both companies would still win big time.

We might yet see a 5c to - 8c per share sweetener as that could cost RMS up to $30M of the cash BRB holds.
That would at least put value on the Li benefit and Ularring.

GLTAH CW

Expand

Thank you CW you now have my attention.IMO RMS will want 100% of BRB they will not let this go and there will be a cash component to get this over the line. Unfortunately l don’t agree we are getting a great deal it only seems that way due to the rising GP. I totally agree the deal long term is our best option but l can’t accept RMS getting what has been discovered to date and what potentially there is still to be found on the BRB tenements without paying a premium Yes the rising gold price has worked in our favour, would you consider the deal to be fair if the gold price went South, furthermore the rising GP also increases the value of what we have in the ground. As you pointed out RMS would have benefited selling into the current spot market so they have the cash if required to get this deal done. I’m holding tight and watching this play out, l believe like minded SH who don’t believe this is a fair deal most likely will do the same.

BRB Price at posting: 51.0¢ Sentiment: Hold Disclosure: Held
5 Upvote

2 Great analysis

Reply