Resolute to sell Ravenswood, page-33

@tangs

Hi tangs,

I'm actually of the opposite view. I think a cash sale opens up the free cash flow at Syama, whereas a spin off will be dilutionary because the expansion plan for Ravenswood still needs significant funding. The spin off creates uncertainty and opportunity for banksters to gouge value out of the company. A cash sale, even at a discount price, starts putting cash onto the bottom line from Syama (assuming RSG successfully executes the final stages of commissioning of the project).

The divestment is definitely a departure from the telegraphed production ramp up plan but getting Syama bedded down is priority number one as far as I'm concerned. Syama is scalable and I'd prefer that production growth came from bringing forward investment in that project. After all the only reason I got attracted to RSG is the potential of Syama.

I hope they get cash from someone and run, the spin off means they wouldn't have found takers after the for sale sign goes up or the offers they receive are too low. Esh