whos selling, page-12

Thanks 4 the reply Trader11

I have been trying to work out what is best
As I see it BMM has 2 practical options
1. Merge with NGF
2. Get the ore out the ground and sell it to NGF and other nearby producers

If BMM gets the ore out the ground they will take some profit and NGF probably more profit

It will still probably take several years to dig and sell all the ore (guess)

BMM will suffer economies of scale in cost of getting the ore out of the ground compared to the merged company and only get a part of the profit, but it will be less diluted.

As a holder of NGF and BMM I guess I see all the profit eitherway but the overall costs are less in a merged company.

Maybe the main questions are
1. Will the value be reflected in share price faster if the companies merge?
2. What do BMM shareholders value NGF at

Definitely the merger would help NGF get back up to true value faster. I would presume if BMM had to get the ore out the ground itself it would be a few years before it started getting into real profit, so BMM shareholders would get true value faster with a merger - but I dont know this.

As for NGFs value - I dont understand why a producer (with upside) is valued so low- even taking into account dilutions, production costs and hedge book. So maybe I am missing something. But I keep putting my money and mortgage where my mouth is. So I hope I wont be selling my house in two years time.

I wonder if the BMM directors who have over a third of BMM shares will tell us their calculations as to why a merger is better for them.

Cheers
Tomu