latest update from Patersons;
The bid price is at a big premium to the recent share price but it is still below our recent valuation of $1.72 per share. The market has reacted strongly to the announcement, with the shares hitting $1.60 after trading resumed and are currently trading at $1.55, implying that there may be a better offer to come.
?h
The bid works out on an EV/t basis at $0.33/t of total resources and looks relatively cheap when compared to recent transactions. We calculated an average EV/t average of $1.70/t for recent coal IPOs and mine acquisitions. This would imply a valuation that would be hard to achieve but at the minimum we would anticipate a takeover at around the $0.50/t or $2.20 per share, which may also be ambitious relative to a bidder that has a well-established history of not paying big premiums.
?h
A higher price than $1.50 may be achieved if either Xinyang, which has 13% of the stock or Xstrata, which has the big Wandoan deposit next door to NEC??s Elimatta project.
?h
We reiterate our BUY recommendation with a price target of $1.70 per share but recognise that a higher price is entirely possible if a competitive bidding situation were to emerge.
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Last
$1.24 |
Change
-0.005(0.40%) |
Mkt cap ! $1.958B |
Open | High | Low | Value | Volume |
$1.23 | $1.24 | $1.22 | $2.796M | 2.276M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 12320 | $1.23 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.24 | 52453 | 6 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 8120 | 1.230 |
1 | 815 | 1.225 |
3 | 19814 | 1.220 |
3 | 31744 | 1.215 |
7 | 28005 | 1.210 |
Price($) | Vol. | No. |
---|---|---|
1.250 | 7814 | 1 |
1.255 | 7814 | 1 |
1.260 | 10401 | 3 |
1.265 | 10514 | 2 |
1.270 | 41262 | 2 |
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