Article as above.Thanks@Davisite
Bankers pitch Tietto Minerals after Chinese miner buys inJul 20, 2022 – 12.52pmThe defence mandate pitches are flying towards tightly held West African gold play Tietto Minerals, after a Chinese gold miner revealed its interest in the company.
Zhaojin Mining Industry Company Limited lodged a substantial shareholder notice for a 5.2 per cent Tietto Minerals stake late last week, showing it accumulated a stealth stake in April and May before jumping above the disclosure threshold on July 8.
Tietto’s project is due to start pouring gold later this year. Bloomberg
Zhaojin is significant player in gold in Asia. It is the largest gold producer in China’s Shandong Province, an area known as the country’s “gold city” thanks to its ample reserves and long mining history, is listed in Hong Kong with about a HKD21 billion ($3.9 billion) market capitalisation and recorded $1.5 billion revenue last year.
Zhaojin predominantly has mines in China, however has popped up at Tietto as its project is on track to become the West Africa’s next producing gold miner.
Tietto owns the Abujar Gold Project in Côte d’Ivoire (Ivory Coast), which is targeting first gold pour by the end of the year, and the company raised equity in 2021 and this year to fund its project through to production.
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TIETietto Minerals Limited
$0.440 3.53%View TIE related articlesJul 21Oct 21Jan 22Jul 220.2700.4500.630Updated: Jul 20, 2022 – 1.57pm. Data is 20 mins delayed.AdvertisementIt’s not known whether Zhaojin has plans to take its Tietto interest further; however, bankers reading the smoke signals haven’t waited around for an invitation. It is understood they’ve been sending proposals to defend the company, just in case.
Tietto, listed on the ASX with about a $400 million market capitalisation, was said to be mulling its options.
Tietto’s board appears to be in a reasonably strong position, thanks to its share register.
About 45 per cent of the group’s shares owned by long-term high net worth holders, who have been invested since before its IPO in 2018, and the board itself, which means any suitor would likely need a board recommendation to get past the front door.
Tietto shares were at 44¢ on Wednesday. Zhaojin’s buying stretched from about 38¢ to 53¢, according to its substantial shareholder notice.
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Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@copyright linkSarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@copyright linkKanika Sood is a journalist based in Sydney who writes for the Street Talk column. Email Kanika at kanika.sood@copyright link.au
