I suppose there are a few different factors that could drive up...

I suppose there are a few different factors that could drive up an offer price.

1. NN is high-grade, which is going to allow for high-margin production. I don't understand the economics very well around this, but Spec and Joel seem to have a pretty positive impression here. Plus there is still excitement around how many ounces NN can deliver – a lot more than 721,000 ounces currently we all think.

2. The potential for lookalikes of NN, which SL was sounding very confident about in the most recent interview.

3. The fact that there is a relatively new processing plant within a few hundred metres of these discoveries. So there is an asset value for the mill, which seems likely to increase as the MRE grows. Plus it gives SPR an optionality that pureplay explorers lack. Ultimately, if shareholders don't feel a takeover offer is high enough they can choose to take the company back into production themselves.

4. The suggestion that the gold price might finally be on the move towards the higher levels that people have been talking about for 18 months. Perfect when you already have the potential to restart into high-profit production. A higher gold price means bidders will also feel richer, with stronger balance sheets.

5. The fact that any bidder will have to persuade Tembo and Delphi first. Surely they will want to maximise their pound of flesh in any deal, even if they have a long-term sweetener in the royalty they hold.

Having said all of this, I am moving away from a previous hope that SPR sells itself to the highest bidder. Yes, if it is a great offer. But a glimpse of BGL's market cap must have the board thinking about taking the business back into production themselves, especially if next month's MRE points to a significantly enhanced resource base.