RE: "Potentially generating significant cash flow and profits "11 Dec 2024 07:54
Effectively Sibanye are using NEO as a shell company to create value for their Uranium assets for which the market attribute no value to their share price atm.
Remember JB did say that the North and South Beisa projects were originally going to be the second acquisition however they tied those assets up before the Sibanye deal.
I’d also go as far to say that Sibanye having done a thorough due diligence on NEO must have also liked the Henkries project and what that could bring to their bottom line in the future by taking a majority stake in NEO.
Sibanye also have some form in this regard to what they did with DRD Gold and that has bought a significant amount of value to their bottom line.
JB has publicly referred to Sibanye as a great big brother to have and now I can think I can see why.
Market can’t see beyond the dilution atm but I think the penny will at some stage drop and a re-rate in NEO’s share price is only a matter of time.