Can you give us an update on your offer for OreCorp?
- It is going well, our offer is open and it’s the only one open at present.
- Our offer is unanimously recommended by the OreCorp board of directors, and they have all tendered to it.
- We have already received FCC approval for our takeover – this is the only Government of Tanzania approval required to complete the transaction.
- All in all, we are gaining momentum leading up to the Feb 23 expiry.
Can you comment on what else makes your offer different from your competitor?
As we discussed last time, a portion of our consideration is in the form of our shares. Perseus’ offer is all cash.
- Investors always say they want to buy low and sell high.
- Most would argue the mining sector is closer to the lows than the highs for the cycle.
- Considering that taking an all cash offer is like selling at the low, does that make sense?
- Currently the implied value of our offer is A$0.54 but over the last 12 months our stock has been as high as $5.50.
- With today’s exchange rate our offer would be worth A$0.72.
- So looking ahead, we see a lot of upside in our shares, especially with the potential to be re-rated.
I see you reported your Q3, what are the highlights for the quarter?
- Continued consistent cash flow generation from our operating mines.
- Additionally we are progressing well on our projects at the Ying mine, which will increase the tonnage processed as well as lower the unit mining costs, we expect an updated technical study on Yin mid-2024 outlining these improvements.
- The market seems to be responding favourably to our quarter, with us trading up on a day when most of our peers are trading down.