When looking at what the players are saying at the Diggers and Dealers as well, Ramelius paying $180 million for only 18% of Spartan values Brighstar at what? (This is more than double our market cap for just 18% of Spartan??). Suggestions below, that the $1.35bn market cap, may now be too expensive for a takeover.
Alternatively, as was mentioned in another thread here, bigger players are looking for big ounces at value. Brighstar has been mentioned by Tim Hoff and Hedley Widdup's Lion Selection Group as a value gold explorer and producer (and that was before the announcements on Thursday...although I am sure they were probably privy to the news before the rest of us).
Arguably the biggest talking point for analysts heading into Diggers and Dealers is whether Simon Lawson’s Spartan Resources, owner of the immense and high-grade 1.5Moz Never Never discovery, will draw a premium bid from a resource hungry mid-tier.
Ramelius seems most likely, having kicked off a cat and mouse game by spending $180 million on ~18% of the Dalgaranga gold project owner.
They’re one after another at 9am and 9.20am on Wednesday morning, meaning RMS boss Mark Zeptner and Lawson will be rubbing shoulders on the Goldfields Arts Centre stage, a situation juicier than the steak at the gala dinner to follow.
The meeting rooms of the GAC will be closely watched for signs of a pow-wow between the Mt Magnet mining bosses and their corporate advisers in the days leading up to their talks, as will the myriad hotels and public houses of the gold rush capital.
With both landing shots in the media in recent days – Lawson suggested $1.35bn SPR may be too expensive for its suitors while Zeptner said ‘it’s a nice to have’ rather than a ‘need to have’ for RMS – what takes place in the shadows leading up to the event could tell how big the fireworks may be.
BTR Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
(20min delay)