Anything over $1.90 , I am all for a take over as that is about where I calculate the NPV of the current indicated with a little inferred resource stops .
I feel however a combined entity is worth more than the sum of its parts , from an extrinsic perspective , ie : RMS/SPR entity can hedge forward some of Dalgaranga's production something SPR would have trouble doing without complicated straddles .
Advantages of combined entity :
Pushes the combined entity higher in the All ords indexes so more funds will consider it ,
No one mine risk in case of a disaster
Get a proven mine building administrator with RMS (no disrespect to employees of SPR) but as a total team (not individually ) SPR have yet to prove themselves from a UG mining perspective with or without contractors
On the flip side apart from treasury , RMS's mine assets (even Penny) do look anemic compared to Dalgaranga on many indicators , LOM , OVM , tenor (not Penny) , width of stopes , strike length , depth potential , potential repeatability along strike , mill condition ,
The big question obviously is how much more exploration potential is there at Dalgaranga ?
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