The failure of the merger was always on the cards. I found it...

The failure of the merger was always on the cards.

I found it unbelievable that Gindalbie would pay such a price for a company that did not have any JORC resource yet. Gindalbie shareholders were always going to cry out.

Thats not to say SDL should not be capitalised at that price based on it's potential. However in the cut and thrust of M&A activities it is impossible to accurately value such a company. This was apparently another major reason why the merger is off.

Maybe Gindalbie should look at SRK which has a JORC resource of 172mt at 62% Fe and a 'target' resource of 1.2b tonnes at 62-66% Fe yet is capitalised at approx 1/7 the value of SDL.