Dear Sally
a scrip bid doesn’t use up any cash
we don’t have access to GMD model, but I’m sure they can easily work out whether it makes strategic sense or not.
OBM is going up with or without a partnership with GMD … let’s compare performances every 6 months
you can value companies on resource inventories if you like, but I value them on genuine high grade gold potential and the likelihood of continuity for 5 - 10 years.
GMD with merged potential annual production of 400,000/500,000 plus ounces would rate higher (multiple x cashflow) than being stuck around 300,000.for the next 3 years
You should also remember that the most successful gold groups over the last 2 decades in Australia did so by acquisition/mergers and big exploration programs over known historic high grade goldfields.
Its a shame GMD couldn't get involved in the Ora Banda story going 2 years ago when Luke Creagh first joined that company to take it underground
above a performance comparison of OBM and GMD over the last couple of years … and that gap will widen .. imho
(20min delay)