The "mineral resources" terrace (St Georges terrace) in the city...

The "mineral resources" terrace (St Georges terrace) in the city of Perth today (Friday 25 Feb, 2023) has been abuzz with news and speculation, (and talk in the bars after work) as reported in the West Australian Newspaper.

The demise and failure and debt and write-downs of St Barbara has been big news here.

It looks like St Barbara gold are a basket case, and yet GMD wants to merge with them - go figure.

One assumes that GMD could call off the merger agreement and just wait for St Barbara to go into administration, and then pick up St Barbara for a song. Which raises the question, how good a negotiator is Raleigh Finlayson and GMD?

Will, or can, Raleigh Finlayson of GMD renegotiate the terms of the St Barbara merger, or will GMD step away from the merger altogether, or will GMD use it's recent financing to largely bail out St Barbara's debt and collapse - big questions?

We expect that GMD are currently in talks with the major shareholders who recently paid $1.20 a share in the large capital raising. These funds might have a significant say in the outcome, given that they have probably been also following the St Barbara and Dacian debacles closely.

The GMD and St Barbara merger is far from happening IMHO, especially after today's reporting and results, in fact, it's beginning to look like GMD may walk away from the merger, and if they do, then St Barbara is toast, and may (eventually) go into administration.

The question now is, what are the opinions of GMD's major shareholders.
RED5 are waiting in the wings, to soak up any additional demand for Laverton processing.

Maybe they should all just bite the bullet and get together, GMD and DCN and SBM and KIN and RED - and then we might have something meaningful, but it would surely take the tempering of a lot of high-ego alpha males to bring this result about, so I can't see it happening. Some times these mining company executive egos are so self destructive that they'd rather die, than merge and live - it shows a lack of intelligence and common sense, and complete disregard for shareholder welfare.

These are volatile times.

And it's a very interesting time, to watch this space.

As per the dismal St Barbara financial report today, perhaps it's time for GMD to also mark down the value of St Barbara and have that reflected in a NEW merger agreement package, on more favorable terms to GMD shareholders. Can Raleigh do this? It's all about the quality of management here!

Dacian has the plant, GMD has the gold, and St Barbara has .... well .... after today's report ... not much.

Do GMD spent their recent capital raise on bailing St Barbara out of their financial debt and disaster?
Is this what the capital raising was intended for?
What is the opinion of GMD major shareholders?

Gw