I am for the Merger. I do believe there is some shenanigans...

I am for the Merger.

I do believe there is some shenanigans going on with the price and the offer but overall it seems to work out quite nicely for both company's. The merged entirety has limited downside with multiple resources, great cash position and no hedge book(when paid out). I would like the merger at a slightly higher price for SVL share but we have been trading in the this price range for nearly 1.5 years, we could hope the market revaluation of SVL with a higher gold price and sugar zone sorted out but if we want to get the full upside of the increasing gold price the merger seems like a better vehicle to do so.

I would prefer SVL using it cash horde to buy up the more undervalued explorer or production companies as they seem better value for money with mining sector in a major bear market however this is unlikely to happen. Red5 has less upside but is a safer bet. As we go into a gold bull run safer bets get more capital early on and the merged entries will be one of the safest bets on the ASX.

With a higher gold price the best metric for profits is more ounces sold. SVL can't double it ounces sold with their current resource but the merged entity already does. The merged entity is already a cash cow but at a slightly higher gold price SVL share holder will be eating good with an extra 200,000 ounces sold per year.


I am concerned with the comment around the tax losses being the reason for the higher red ownership as this downs make sense when reviewing ATO rules around tax loss but I am not accountant and I need read more into it.