If RMS was to expand by swallowing up both Doray and Bullabulling over the next 2 years then we would have a substantial mid-tier gold mining company with great potential.
Production at Wattle Dam, Mt Magnet, Bullbulling, Doray, QLD and Nevada etc.
We would be looking at 350-500oz gold per annum in the near term.
I would not bank on this happening however, because despite the numbers of them on occasions, mergers are still notoriously difficult to navigate.
For the moment, suffice to say that AZX is undervalued, and it seems that there are not many who want to invest until after the merger, post February 2012. It could of course, turn out to be one of those situations where fortune favours the brave, those who opt to get in early, but it is high risk, and with global markets and volatility the way they are, it is fair to assume that investors will get more than one chance at current (or lower) prices to buy into AZX and Bullabulling.
Gw
AZX Price at posting:
26.8¢ Sentiment: LT Buy Disclosure: Held
