Pretty closed minded if ur first reaction is to knock back the suggestion of a deal without knowing any terms… Cobar is a town of 5,000ppl.. the fact it has so many companies, mines & mills is incredibly inefficient.
You don’t get paid as a single Asset miner on the asx, especially with unproven management. Simply too much risk. Merging provides huge synergies not only in shared workforce (best practices), shared infrastructure & shared exploration tenements (plus lower G&A) but it also provides a listed entity with multiple revenue centres and higher liquidity which makes it far more attractive to institutional investors and the higher market cap gets you into far more indices.
AMI is littered with retail investors and a high net worth individual in Lyn Brazil.. no institution is touching it and they are the lower cost of capital. 1 + 1 should = >2 in a merger scenario… if you have to share some of those synergies with MAC so be it.. they need to pay the premium to acquire and then both sets of shareholders enjoy the synergies (if it’s a scrip deal)…
AMI Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
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