i think it is worthwhile reading last Mondays Diggers presentation from OBM headed strategy and valuation.
I like the new OBM management (ex NST) and the asset replacement valuation breakdown ($560 million) plus cash/gold $32 million, plus tax losses, and no debt - compared to current market cap. of only $85 million.
The OBM plant and Davyhurst project are now showing every indication of stability and cash flow growth and RMS could certainly utilise the $335 million in accumulated tax losses that OBM group has. OBM has a major shareholder in Hawkes Point (~45%) so a negotiated scrip deal is likely to be the only future exit for that party. If RMS don’t want OBM, if feels like they will eventually be a part of a future Eastern Goldfields rationalisation anyway. i hope RMS moves sooner, than later … as a logical location for that 3rd hub we have heard about for so long.
RMS Price at posting:
$1.12 Sentiment: Hold Disclosure: Held
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(20min delay)