Add 205M GMD shares to SBM assets, current value ~A$250M, or...

Add 205M GMD shares to SBM assets, current value ~A$250M, or ~20% of GMD.

The reality is that SBM are bleeding cash. They drew drown an additional $20M debt last qtr, they have debt covenants that they will supposedly be in breach by end of June, and they cannot sell either Simberi or Atlantic.

They need cash, and they need it now. Not only to release debt tension, but also to prop up their existing operations. It's a significant chunk to maintain the status quo.

The way I see it, with GMD they gain certainty with respect to the debt and can fund their ongoing Simberi and Atlantic operations. With 20% of GMD they keep a sizable share in "the golden goose" without stumping up funds required to weather the winter. They also share the benefit from GMD dirt (good, bad, or ugly) through Gwalia and any operational efficiencies this may bring.

The alternative options being SLR or capital raise bring no certainty to SBM BOD or SH. It's all about risk and risk mitigation.