Up 18%, It adds half a year so the 5x multiple still stands. I never said it was a good offer but no takeover like this will go anywhere near NPV or whatever value you think, you get paid something today to transfer part of the risk of development to someone else. You don't get fully paid for no taking the risk of going through development. You just have to find the best middle point that fairly values the risk transfer, in this case its giving up part of an undeveloped and unproven asset for part of proven cash cow mines.
The point I was making is that the upside is not as high as detailed in Wombat's flawed maths and assumptions. Also as its all scrip, the offer is worth whatever SLR shares trade for.
EGA Price at posting:
33.0¢ Sentiment: None Disclosure: Not Held
