great post up until the word mug.

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01/07/20

05:27

Post #: 45553363
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Originally posted by triage: ↑

I'll take those odds.

1. Why would Ramelius buy Rox to only get 70% of the project?

2. For Ramelius the number crunching for Rox is different than for Spectrum in that they only will have Penny come on stream to replace Vivian in FY22 at the earliest in feeding into the Checkers mill at Mt Magnet. If they buy Rox for Youinme and Grace they would have to come up with another $100m or so for a new processing plant. Totally different set of calculations.

3. About 600k oz of Youinme is in refractive ore. Apparently the Rox MD has said that he intends to haul the refractive ore to a plant that can handle it. I'm pretty sure the Checkers mill is not one of those. Why would Ramelius buy into that headache?

4. From what posters have said the Rox MD intends to defend the company from any takeover, and already has a blocking stake. The Spectrum guys on the other hand were eager. They bought Penny for $50k cash in late 2018 and were totally fine with selling it for $220m in early 2020.

5. Ramelius is looking for production ounces now not possibly in two or three years time. Their belief is that once a miner gets well over 300k oz pa institutions and investors rate them differently. Just today they have shown that they have 6 years of life of mine and a bunch of mines to be developed in future years. If they buy they will go after an established mining operation.

You might be right that Ramelius is kicking the tyres of Rox but to say that the transaction is 100% on is a mug's effort.

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great post up until the word mug.

RXL Price at posting: 8.4¢ Sentiment: Buy Disclosure: Held
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great post up until the word mug.

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great post up until the word mug.

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