Szaba, RXM has an open share register, the sp has been kicked from pillar to post, the market is saying that RXM has 2 chances of funding Hillside - buckleys and none.
Work on the mining plan for Hillside as well as the processing plant has gone through concept and pre feas. So the ability to mine earlier than C is quite high.
The answer to your question about premium to current price is "whatever OZL can get away with". I would start with a 20% premium and be prepared to go to 30%. I think most investors would grab the 20%, considering the inability of Hillside being funded by RXM.
If the $750m on the bal sheet is used to purchase RXM and fund Hillside development, the cash flow from P Hill could fund the rest. SFR, IMO, would not need to be sold. OZL, I am confident, could bring Hillside to production and not go into debt.
For what it is worth, the quicker OZL moved on RXM, the better.
HT1
OZL Price at posting:
$6.66 Sentiment: None Disclosure: Held
