DYOR
Interesting, Euroz is backing the MIN deal.
Note that Euroz have in the past issued research report on AGO with 3.7ish valuation in March 2018.
Their report on 20 April 2018 doesn't take the narrowing in IOP grades and the recent rising IOP futures!!!
MinRes offer “a good premium” for Atlas shareholders, says Euroz
20th April 2018
Perth broker Euroz Securities says Mineral Resources’ (ASX: MIN) scrip offer of 3c-a-share equivalent represents a good premium on the recent trading price of Atlas Iron (ASX: AGO), which has been sold off in line with the falling iron ore price and widening low-grade discount.
In a new research report, Euroz analyst Michael Emery, says its valuation of Atlas was predicated on the reduction in the low-grade iron ore discount after the cessation of the Chinese winter.
“However, this trend appears to be more permanent than first thought, with FMG recently revising down its price received forecasts,” Emery wrote.
“We feel that this deal represents a sustainable future for AGO’s assets and management’s support for the deal confirms this thinking.
“Scrip consideration provides AGO shareholders with exposure to a diversified commodities and mining business that is going from strength to strength.
“We recommend that AGO shareholders vote in favour of the deal, in the absence of another offer.”
Euroz has set a price target of 3c for Atlas shares, in line with its valuation of 3.1c.
