The announcements give a strong indication from the Board that they consider the best way of realising value to shareholders is by way of divestment/merger. With current cash on hand of $28M and no debt, I get a value of $20.2/oz for the EV to Resource. That is pretty attractive for someone to pick up and develop, given that all the approvals are in place along with a certain amount of infrastructure development and delivery of equipment.
I can see that doubling the SP will still make an attractive price for a takeover. The sooner the better, so far as I am concerned.
Imagine the market response if they try and raise equity to have another go? Apart from the fact that putting together another BFS will take 12 months or so..
The project is definitely saleable and worse cases have been taken over and proceeded with. If competent operators are involved, I may even stay with the new owner.
The announcements give a strong indication from the Board that...
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