The price of the gold assets is of course tied to the price of MLX, and seemingly as at the date of RNI sh approval, whenever that may be; but certainly before 1/12. 18m shares is what RNI gets.
At the time of the announcement the SP was about $1.12. However, not so long before then, the SP was solid at $1.50 or so, only to drop back. Last Wed it hit 98.5c. For 18m that = $17.73m, way short of the Taurus debt amount and fees of at about $23m. However, yesterday it had rebounded to $1.20. That = $21.6m. That's much better! I'm starting to feel less nervous at that sort of price.
Why did the SP drop away from $1.50? MLX posters pondered that, and also why it hadn't reacted positively to the rising A$pog. Anyway, 3 days of above 1m shares a day trading - much higher than the norm - appear to have seen the bottom and a new ascent. Some chartists over there see good things. The kerfuffle in China and other destabilising of the world economy events have seen A$pog rise to $1581 overnight.
I was very critical of RNI and MLX for tying the fortunes of RNI to the price of MLX; also on how RNI is to convert them to cash if there is no off-market sale to an institution without wrecking the SP of MLX? However, prevailing wisdom should see an off-market sale.
Anyway, RNI's fortunes are tied to the sp of MLX. That's the fact and what we think about the wisdom of that is irrelevant. It is what it is! We are stuck with it! So, c'mon MLX. Get your SP back up to at least $1.30. For 18m that = $23.4m and that should clear the Taurus debt. $1.40 = $25.2m. $1.50 = $27m.
It's hard to watch though!
AUR Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
