Q: Your analysis of the Robex/Predictive merger would be appreciated.
5i Research Answer:
It is essentially a merger of two similar-sized companies, and should be positive for valuations as bigger companies tend to be more highly valued by investors. RBX holders will get 8.67 PDI shares for each share. Combined market cap will be above $2B. The RBX CEO will be in charge. The West-African focused company will now have more mines and diversity and better access to capital. RBX made another acquisition in 2022 and we might expect more. Canadian companies tend to get better multiples than Australian companies and this could also help the stock. All-in, we think it is a good combination.