Interesting to compare this takeover to the recent SBM/ KIN...

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thesnowkeepsfalling

126 Posts.

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19/10/21

13:34

Post #: 56906127
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Originally posted by miangel1: ↑

Yes Tom the offer is nothing much to get excited about from an AOP's shareholder perspective.

The offer undervalues the Rebecca Project significantly imo.

The latest MRE update released earlier this year was premature imo and contained no significant increase in Resource and included a minor decrease in grade.
The update conveniently was unable to include "emerging footwalls" and other significant intercepts particularly along the eastern side of Rebecca's "optimized pit". These were first alluded to in January or February 2021?
AOP has chosen not to provide any informative modelling of these structures but to provide vague and obscure depictions of mineralisation outside the "optimised pit".
AOP has been slow in drilling and defining its Resource this year given the prospects it had and the cash in hand. They gave no indication of the next resource update, but muttered about mining studies.
The market price action for AOP this year has imo not matched or reflected the exploration and development news.

So it is my conclusion that Rebecca's "RE-OPTIMIZED" PIT contains at least 1 mill Oz at a much better grade than shown in the current MRE.
My conclusion is AOP & RMS have been in quiet discussions for some time, tidying up a few issues before the bid.

Not sure of the total value but sure that it is more than the ~$130 Mill being offered given AOP's cash!

RMS Board is astute and am confident they have done their due diligence on the Rebecca Resource (including the longer term development plan).
I do see that RMS are a positive with their track record and see them getting a bargain at current deal.

Would be great to see AOP be able to pay a 10-15c dividend to shareholders pre deal.

Most likely the deal will proceed but i am not committed to it and hope for ??

GLTH

ps i also hold RMS

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Interesting to compare this takeover to the recent SBM/ KIN offer, which was declined by KIN. Not dissimilar valuations, but AOP's prospects, resource, continuity of resource, drill work, and cash balance are all far superior KIN's position. KIN felt it was in their shareholders interest to decline the low-ball offer (even after including a dilutive 13M capital raise in the deliberations). Interested in people's thoughts - why are KINs/AOPs positions poles apart? Who are doing right thing by their shareholders?

I can say that RMS management have a good eye, and RMS shareholders must be pleased - there is a bit of guffawing over on the RMS thread. "Paying them out with their own cash.." etc
AOP Price at posting: 53.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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