Agree with your thoughts Brian.The MoM team put up their own...

First 111 Last

Share
Profile

Follow
speculator101

11,979 Posts.

6706

16/04/24

22:41

Post #: 73376716
Share

Originally posted by realbrianchu82: ↑

Thanks Skiline... here's a one-off =)

My personal opinions on why I like the Westgold-Karora merger:

1. Westgold Resources has been looking around for something the past three years, and had been beaten to the line (Musgrave Minerals) or decided to not proceed (Gascoyne Resources). This merger comes at a good time as gold makes yet another all time high, where operating margins could really go nuts in a good way.

2. The merger will bring some costs down. Karora is listed on the TSX though most of its operations are in Australia. That should shrink the Canadian offices even though it'll be a dual listing. While it boasts synergies of just below $500 million, the details aren't apparent but Westgold Resources does its mining in-house and the suspension of Paddy's Flat frees up some resources to move to Beta Hunt if need be (my guess).

3. Westgold Resources has significant cash and want another operations. Karora Resources want more liquidity to grow. Sounds like they are a good match.

4. Karora Resources owns the Lakewood mill which is in the Kalgoorlie "Golden Mile". Gives the merged company the firepower to get their foot in the door to snap up assets in that area, or even just get in the action.

Westgold Resources copped a belting after coming out with a less-than-flattering preliminary March quarter operating result. Not entirely their fault. Merger might not have come at the best time, right after the sell-off. And paying a 25% premium to Karora Resources now feels like a smack in the face of Westgold Resources shareholders. But, taking it long-term, this is a strategic move. Well worth it when shareholders look back.

Ok... that's it from me.

You know where to find me.

Gold's making all-time highs. The ASX Gold Index is breaking out of the three-year highs. Could be the dawn of another 2011, 2016 or 2020... or better.

Best wishes to all with your investing.

God bless,
Brian

Expand

Agree with your thoughts Brian.

The MoM team put up their own research on the mid tiers today. Suffice to say both WGX and KRR are undervalued and I do think in this case, 1 + 1 = 2.5 (hopefully 3).

WGX Price at posting: $2.10 Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

GED

92 metre sulphide zone extends Hazelbrook Zone for Golden Deeps

Week 38 Wrap: US markets panic at 50bp cut; ALS’s minerals revenue slowdown; RBA path unclear

S32

South32 snaffles US$166M grant from US govt to develop manganese operation in Arizona

JLG

Johns Lyng buys controlling stake in Keystone

Mastering the 'wealth mindset' with courage to redefine success

There are more pages in this discussion • 10 more messages in this thread...

First 111 Last

Add WGX (ASX) to my watchlist

(20min delay)
Last $2.76		Change 0.040(1.47%)		Mkt cap ! $2.617B

Open	High	Low	Value	Volume
$2.70	$2.77	$2.69	$5.395M	1.988M

Buyers (Bids)

No.	Vol.	Price($)
15	20081	$2.76

Sellers (Offers)

Price($)	Vol.	No.
$2.77	61289	14

View Market Depth

No.	Vol.	Price($)
13	29133	2.750
20	54206	2.740
16	62162	2.730
17	77623	2.720
15	148993	2.710

Price($)	Vol.	No.
2.760	48833	25
2.770	78505	15
2.780	90153	19
2.790	85803	14
2.800	258254	9

Last trade - 10.45am 23/09/2024 (20 minute delay)

WGX (ASX) Chart

Agree with your thoughts Brian.The MoM team put up their own...

Top Stories

92 metre sulphide zone extends Hazelbrook Zone for Golden Deeps

Week 38 Wrap: US markets panic at 50bp cut; ALS’s minerals revenue slowdown; RBA path unclear

South32 snaffles US$166M grant from US govt to develop manganese operation in Arizona

Johns Lyng buys controlling stake in Keystone

Mastering the 'wealth mindset' with courage to redefine success

Buyers (Bids)

Sellers (Offers)