Stefanis,
You are right about PEs for resource stocks, and in the case of IGO a big drag on the ST PE is the cash, most of which will be deployed to fund Tropicana, which should near on double IGO's earnings. In contrast Stockman for JML is further out and the funding for it not yet raised.
Also wrt the quoted PEs, not sure they fairly reflect realistic costs and production rates as we move into the Moran ore body - more than a tad conservative imho.
I really think this deal reflects IGO's impatience to transform into a new (and better) WMC. Bonwick is however going to need to pull a pretty big rabbit out of JMLs assets to justify a 30% dilution of a story with so much growth in it.
EL
igo to take over jml, page-13
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Last
$5.30 |
Change
0.020(0.38%) |
Mkt cap ! $4.013B | |||
| Open | High | Low | Value | Volume |
| $5.35 | $5.46 | $5.25 | $14.75M | 2.767M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 1250 | $5.28 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.30 | 17764 | 3 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| IGO (ASX) Chart |