2 SPR will gain 40% of RMS which reduces our percentage of SPR by 40% after dilution.This reduces existing RMS shareholders benefit of the purchase by 40% Assume SPR assets the produce 200k oz a year at 3000 profit an ounce and our share is 40% less tax 168 million profit per year Simply speaking we have 20% of them, they will have 40% of RMS which essentially gives us 40% upside of SPR resource.
3 SPR have 40% of RMS assets after dilution Rms will be making around 400 million a year on existing assets 4 billion x .4 1.6 billion loss.
Summary .Through dilution we are losing 4 billion which includes. 1.6 billion of value to existing production of RMS over 10 years to SPR. We are also paying 2.4 billion cost of the asset to gain 160 million after tax profit if they produce 200000 ounce making 3000 ounce
Cost 2.4 billion loss of RMS profits 1.6 billion Total cost 4 Billion benefit to rms 168 million after tax profit.
RMS Price at posting:
$2.12 Sentiment: Sell Disclosure: Held
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