I attended the RMS and EXU AGM’s yesterday. The body language in...

I attended the RMS and EXU AGM’s yesterday. The body language in both rooms was that the deal was off. However the ALK transaction GM will be delayed until late December and the RMS original offer is still on the table. The only upside for RMS not withdrawing the offer is the potential to return shares acquired after a “defeating event”. I had a good chat with the EXU CFO and he said it was not a forgone conclusion that I would have my EXU shares signed over to RMS returned. I do not fully understand how this will work?

I do not believe that the trucking ore issue cited is a real one. RMS commented upon trucking ore from the Marda Deposit (similar grade deposit to Tampia) at the AGM- “this is bread and butter stuff for us”. RMS understand trucking ore and do it well and have done so for a long time. They also are excellent miners. Hitting guidance 19 out of the last 21 quarters (the 2 misses were also minor) is impressive form.

I do not think we have heard the last from RMS. I still believe in a risk/ reward sense the merger is very sensible. 

Re Mace, the forecasts at the AGM ranged from 30,000 to 100,000 ounces. One of the bullish investors was a geologist. We will find out next week.

Whether RMS come out with a reduced sweetener after next week’s announcements will be an interesting scenario? I truly do not believe the game is over.