The change in Labor policy has already been priced in - yes.
Has the JORC been price in........no.
Large take over premium built in, dilution? They could let a blind chimp take the helm and this baby will hit $10.
Read this...... then you will see how the offer is not fair and reasonable:
Effectively the valuation metrics that the brokers are using to value the takeover offer are only taking into consideration Valhalla and Skal - thus giving an EV/Resource of $US23.63lb (at the time the offer was made).
The SXR UO paid for UrAsia valued their resources at $US31.61lb.
The valuation of $US23lb does NOT take into consideration, the "100% mt Isa Deposits" - Andersons, Mirrioola, Watta, Bikini, Tjilpa, Warwi and the other additional 15 known mineralised deposits.
It also excludes: - Isa South (9 contigious tenement applications ). - Georgina Basin (greenfields Uranium) - Isa North (Base metals) - May Downs (Gold) - Constance Range (Iron Ore spin off) - Mt Kelly (Copper)
IT IS ALSO ASSUMING that SMM is only entitled to 50% of the Valhalla/Skal Resource.
PDN must offer 1 for 1 for a chance - simple.
Would a larger group come to the party.....I don't know, but ERA (RIO) or BHP would be the most likely candidates as I don't like the chances of foreigners being successful under the current political environment.
TheGimp
SMM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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