Word on the Decline We noticed Euroz Hartleys re-initiate...

Word on the Decline
We noticed Euroz Hartleys re-initiate coverage on $2.9 billion gold developer, De Grey yesterday. And given DEG has A$867 million cash at 30 June, we don’t think the broker is gunning for a juicy ECM fee any time soon. So we read the thesis with less cynical eyes than we usually would:

We believe that DEG is under serve risk of a takeover off, particularly in the next 6 months, post final approvals and before the start of construction, which is scheduled for the end of CY24.


Michael Scantlebury, Euroz Hartleys
Calling for a takeover within a 6-month timeframe is a bold call. So naturally we wonder if there’s some Word on the Decline underpinning Scants’ view? He explicitly points to Newmont’s definition of Tier 1 to support it.

The research note throws into the mix the possibility that De Grey acquires Gold Road using the SLR / RED playbook (a scheme where the aquirer has a “fiduciary out” too) to force the hand of any interested parties to bid for De Grey if they really want the asset.

Let’s see how the short-term unfolds for De Grey. We think a takeover would be a terrific outcome for shareholders rather than wearing single asset development risk going it alone.
Anyone got a copy of the RN?