You're right in that Bibiani looked a good fit. Manageable size, low capex, decent AISC... looked good on paper. I was a bit surprised when it went on the market tbh. Seems strange to pour all that money into it, complete multiple studies etc (which looked fairly positive) only to stick the for sale sign in the ground just when development seemed around the corner. Was he pushed by creditors? Seems unlikely but IDK
The difference between Bibiani and Mako is obviously that Mako was a proven, reliable, profitable producer that also had some high grade stockpiles waiting to be monetised. He could get in there and wring its neck for every oz, create a bit of a smoke screen and almost save face for FY/CY 19 which was looking a shocker. RSG already had 3 different production streams, but all were basically limping along and more or less struggling for profitability / underperforming. The oxide circuit at Syama had a couple of stellar quarters when they were into the high grade, but that was never going to last. I guess JW took advantage of the increased SP using script in large part to take out Mako and add some profitable oz to what was a dogs breakfast production basket.
Nothing particularly risky with Namdini other than the potential for usual development time / capex blowouts. More the risk of RSG carrying a huge debt load when they are currently a marginal operator, and have questionable development credentials on recent evidence. Another 12 months may be a different story if they can deliver at Syama.
Having said all that I hope you're right and they lob an 80c bid tomorrow. I've got a lot more riding on this than RSG
CDV Price at posting:
37.0¢ Sentiment: None Disclosure: Held
