DGO takeover by Gold Road, page-59

Very sound opinions and well based predictions put forward by many! Here's Bell Potters take:

DEG DE GREY MINING LIMITED

Gold & Silver - Overnight Price: $1.21

Bell Potter rates ((DEG)) as Buy (1) -

De Grey Mining's top shareholder DGO Gold ((DGO)) has backed a takeover offer from Gold Road Resources ((GOR)) for a consideration of two Gold Road Resources shares for every DGO Gold share, implying $3.49 per DGO Gold share.

Bell Potter consider's DGO Gold's 14.4% holding in De Grey Mining to be its prime asset, and a likely motivator behind the takeover bid.

The broker notes this could indicate Gold Road Resources intends to make a play for De Grey Mining and its 9.0m ounce Mallina gold project.

The Buy rating is retained and the target price decreases to $1.72 from $1.74.

This report was published on April 5, 2022.

Target price is $1.72 Current Price is $1.21 Difference: $0.51
If DEG meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

https://www.fnarena.com/index.php/2022/04/07/australian-broker-call-extra-edition-apr-07-2022/

I agree that t/o talk has begun, therefore logically meaning DEG is in play. GOR motivation is clear, as previously posted their exploration to date has been lacklustre. The MRE timing is a ticking clock for a bid to be tendered -- or is it?

The biggest, NCM (becoming too dull for words), Barrick, Goldfields (how full is there plate?), NST (always need ounces to replenish mining), EVN (always need cheap ounces), Newmont, Anglo... My point isn't to list possible acquirers, but to note they must all have in-house teams of geos, economic geos, financial experts, ie. everybody needed to make a bid BEFORE the MRE. Without that team each big outfit has to know/develop a "starting bid" is, and how high to go!

April will be interesting indeed.

OV

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