BCI is trading at $3.12. At 0.44 BCI shares for each IOH share +...

BCI is trading at $3.12.

At 0.44 BCI shares for each IOH share + the 10c cash kicker gives an implied price of $1.37+0.1= $1.47 under the takeover.

We are trading at way less than that at 1.34.

Just no interest shown in the market for this deal at all. Seems still deeply undervalued to be selling at the moment, im holding on.

In the announcement today BCI noted that the combined group, with a cash balance of over $190m, would have:

"The technical and financial platform to develop the Buckland project".

I think this statement is probably key for this transaction, Stokes isnt taking his money and running in a cash bid, he will remain invested through BCI stock, with upside exposure to Bucklands project being taken forward more strongly with the combined balance sheet of the group.

In terms of the combined group BCI have maintained their intention to pay out in dividends 30-50% of NPAT in dividends. Given IOH is on the cusp of production with Iron Valley with a 6mpta mining rate, you would think $30m a year in revenue wouldnt compromise the ability of the group to keep paying out an impressive dividend.

BCI paid out 15c +17c dividend for last year, thats a 32c fully franked dividend on a share price of $3.12. Impressive stuff.

To me then the value proposition seems to be stacking up, we dont get any blue sky in the premium with timing not at its best but IOH shareholders get value in a 10% dividend rate and the combined group being able to take Bucklands forward, and diversify the revenue base by having other juniors pay for access to infrastructure.