Ann: Intention to Make Takeover Bid, page-124

Another update from Euroz Hartleys

• Key points to note;
  • BHP concentrate is mixed with MCR Concentrate to produce the saleable product. BHP concentrate has a low Fe:MgO ratio, which needs to be blended with MCR’s high Fe:MgO material to reach the correct specification.
  • The bidding war between Wyloo and BHP took a few weeks to start. BHP is a slow-moving beast.
  • MCR is the highest-grade Ni-focused producer on the ASX.
  • IGO and Wyloo entered into an agreement in February 2022 to jointly evaluate opportunities for downstream Ni processing in Australia.
• The image below is of the bidding war timeline between BHP and Wyloo for Noront (Listed in Canada).

• Wyloo’s initial bid was C$0.315/sh (a 31% premium to closing price previously). The final bid at C$1.10/sh after nearly a year-long bidding war with BHP.
• We have a Buy  rating and $1.80/sh PT on MCR.