Wednesday April 15, 2015: Copper miner PanAust has rejected the latest $1.71-a-share takeover offer from its major shareholder GRAM, saying it does not reflect the company's "long-term value potential".
But PanAust said it remained open to negotiating an acceptable price with GRAM (Guangdong Rising Assets Management).
GRAM holds 24 per cent of PanAust, which, as UBS points out today, leaves little scope for a white knight.
PanAust said GRAM had "timed its offer at a low point in the commodities price cycle". "The offer was announced at a time when both the PanAust share price and spot prices for copper and gold were trading at near five-year lows," it said.
PanAust also argued that the offer failed to recognise the strong performance of its Laos mines and its plan to grow annual copper production by 25 per cent to 90,000tpa in 2018.
"The offer does not appear to recognise the attractive medium to long-term fundamental outlook for copper," PanAust said.
"Spot copper prices today remain below the market consensus long-term copper price and well below the incentive price the Board believes is required to generate sufficient new copper supply."
But PanAust said it remained open to negotiating an acceptable price with GRAM (Guangdong Rising Assets Management).
GRAM holds 24 per cent of PanAust, which, as UBS points out today, leaves little scope for a white knight.
PanAust said GRAM had "timed its offer at a low point in the commodities price cycle". "The offer was announced at a time when both the PanAust share price and spot prices for copper and gold were trading at near five-year lows," it said.
PanAust also argued that the offer failed to recognise the strong performance of its Laos mines and its plan to grow annual copper production by 25 per cent to 90,000tpa in 2018.
"The offer does not appear to recognise the attractive medium to long-term fundamental outlook for copper," PanAust said.
"Spot copper prices today remain below the market consensus long-term copper price and well below the incentive price the Board believes is required to generate sufficient new copper supply."