It would appear that there are a number of different views on this deal and would like to check my own thinking so if anyone wants to join in please outline as succintly as you can why you like or dislike the deal.
I dislike it and I came to that conclusion primarily because I think that the 'relativities' favour the other company. Here goes.............
Before merger UML consisted of @$60m cap with 50koz production per annum plus $40m plus Goldstone assets.
Merger means we are paying @$90m for (@$20m)project plus (@70m)mine build for @50k production per annum (admittedly it may be a cheaper producer but there is also the risk of getting the project up).
Consequently we are paying 1.5 as much as our market cap and getting equivalent production less $40m less Goldstone.
Conclusion: No good!
Plus of course the board will now further delay the intro of divi's but that's another story
What do others think?
good deal or bad deal
-
- There are more pages in this discussion • 36 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)