backdoor listing, page-5

Basically re-rating in RSL's instance would be as a result of the perceived value it now has, based on its current assets, particularly in the light of the Malawi leases recently acquired.

Having said that, the cost of those leases were the issue of shares to RRR, so in effect, one would hope that RSL got fair value for the Malawi leases and RRR got fair value by way of the extra shares.

I'm hypothesising that RSL hasn't paid RRR for any potential upside from those leases, for example if RRR had previously proven what those leases held (such as by way of an existing JORC), then the value of the leases would be much higher. However, RRR stands to benefit if RSL can now prove that those leases contain any significant amounts of uranium (or other valuable substances).

It also should be noted that the perceived value is indeed simply that - perceived, as no company has ever been sold and the resulting money distributed amongst the shareholders, at least to the best of my knowledge. All stocks are valued, therefore on a hypothetical basis. Unlike for example, your family home, which can at some point be sold and therefore the value materialised to a finite sum (less agents commission and legals etc.).

Hope that helps.

Cheers,
T