Talking to Simon today at the Gold conference re RMS he came across that he really does not know what RMS’s real intentions are with their 18% SPR holding but he made it clear any bid would need to be on at least a 1-1 basis. He is clear that RMS has an unclear or less than rosy future production profile from their existing mines/resources.
Simon is also aware that SPR may end up in the ASX200 if its MC increases from $1.5b to circa $1.8b (my figure) which is possible in the next 6 months IMO. He explained the games that may be played to arbitrage the SPR SP to make a profit (Regal are good at this) - ie funds buying in before SP goes up anticipating the stocks entry into the ASX 200 then on entry to ASX 200 exiting the shares.
Being in the ASX 200 opens SPR up to a lot more investors.
SPR Price at posting:
$1.35 Sentiment: Hold Disclosure: Held
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(20min delay)