When I first saw this announcement before reading the details, I was reminded of that old saying "be careful for what you wish for" My recent post which had 25 'approvals', re-stated my belief that corporate action was necessary for SLR to regain some credibility with the serious section of the investment world. I pointed out the attraction to an acquirer the good assets, including the cash pile and the accumulated tax losses, which Cool Hand is saying "will be preserved by the deal" .... LOL! Preserved for when & what ?? I supposes that justifies the inclusion of Les Davis and the other long term BOD sinecure occupant being on the new board - they were responsible for decisions & management that lead to the tax losses being incurred .... and also Les is on the remuneration committee, which will have to give more rewards to LT et all, as they will be managing a much bigger company (sic) .... which it seems will not pay dividends in my life time nor it seems make a capital appreciation. The dismal SP action today says it all .... this is not the deal the market was expecting ! DRM (which one poster typed as DRY) may be dry, an illusion, that will suck ups lots of SLR's cash. It was seemingly rescued form approaching oblivion by the a new MD with a curiously app name of Junk. Perfect for the SLR BOD. He apparently is an old mate of LT and another WMC old boy. Because both shares are linked by the agreed exchange rate, they will rise and fall in unison. On todays closing the MC is nowhere near the $440m claimed for the new entity. DRM shareholders posting are seemingly oblivious to the fact that the SLR share price is being hammered because DRM is a 'sows ear' in the view of the market. OMG .... DRM market cap at the close is not far from SLR's cash reserves, and they think their hard done by ?? This deal is all about cementing the SLR BOD and management team in a very well remunerated fox hole .... SFA for the shareholders again. It's time for a name change .... to S&M mining ... you have to be a masochist to be a shareholder to put up with this smug, self satisfying, sadistic BOD. I won't be changing my votes against all the motions .... send them a message.
SLR Price at posting:
47.0¢ Sentiment: Hold Disclosure: Held