Hi guys,
Out there, a few ‘seize the day’ opportunities being recognised?
Checkers games or chess?
And I think Bridget makes a good point about the eye of Ramelius (already holding a strategic ‘knight’s’ position in keeping with its’ equine emblem ?)
.. And the bit about her sources thinking ‘ it may be easier to come across financing for transactions at better rates’ seems to me to be a concept for which no head scratching is required.
I also agree with the theory that whoever is out there with BIG cash + potential for BIG financing would be wanting the best deal they can get.
…And I remember Simon’s comments to Kristie Batten of 16/09/24 that, maybe, out there in the wide world, there’s someone wanting both Ramelius AND Spartan [ref]
- These times would be getting quite interesting for someone of that calibre?
- And they’ve only just begun?
On review I’m glad I am currently cashed out of my SPR trading portfolio, and am equally happy I’ve loaded up into my long term holding.
To pontificate a bit, I think the world’s - fundamentally and on many different levels - NOT moving towards any happy ever after status, and, in regards the captaining of countries to lead the collective ‘us’ into a brighter future , I believe the general understanding that ‘identity politics’ refers to ‘oppressed minority groups who are fighting discrimination’ (Wikipedia) more aptly refers to the political power of media/wealth-backed showmanship rather than anything else.
…. And I suppose that’s kind of inevitable, and maybe it’s always been the way but I don’t like any of it.
So I think Simon’s words last week in relation to the ‘new position’ an announcement; “Look out!” might be applied on many levels;
.… Why would big players not want to take advantage of cheaper finance and a lower gold price?
How rich a nugget is Spartan now, and what golden potentials are still to be unearthed?
…..And how strategic a chess player is Simon?
Anyway FWIW here’s another rendition of Bridget’s story,
cheers
https://www.theaustralian.com.au/bu...f/news-story/9636cc97b742183494f9562a4422c956
Golden chance for miners to buy rivals amid commodity sell-off
BRIDGET CARTER
4:14pmNovember 07, 2024.
Updated 5:50pmNovember 07, 2024
The Australian Business Network
Australian gold stocks sold off on Thursday as the US dollar rallied following a Donald Trump election victory.
A sell-off in gold stocks on Thursday following the US election result could see a raft of groups that were looking to raise cash before Christmas pare back the size and price of their deals.
Record high gold prices have prompted Australian listed gold miners to capitalise on their booming share prices trading off the back of the strong sentiment surrounding the commodity.
But on Thursday, share prices of gold companies came under substantial pressure, with groups such as Northern Star, Spartan, Ramelius, Evolution Mining, Regis Resources and most others in the sector down by more than 5 per cent.
Groups that have strong cash balance sheets may try to capitalise on the opportunity by acquiring peers at their cheaper prices now that stocks have weakened.
The obvious play is for Ramelius Resources to move on Spartan, which saw its shares fall by more than 15 per cent on Thursday, taking its market value to $1.7bn or $1.25 a share after it hit a 2024 high last month of over $1.60.
Ramelius, which is in a $455m net cash position, pounced on Spartan in June, buying an 8.9 per cent stake at 92c, so perhaps the stock needs to fall further before it becomes interesting for a deal.
Northern Star is also in a strong position for a buyout, with $358m of net cash, and the most logical target is rival miner De Grey Mining, also off more than 5 per cent.
Part of the reason behind a rally in the gold price in the past two months has been linked to expectations of geopolitical instability and an uncertain outcome of the US election.
But the sweeping Donald Trump victory in the race for the White House has caught out some trading in the stock, in that the strong result has created more certainty surrounding policy out of the US.
Also sending the gold price lower is a rally in the US dollar following the election, where the economy is expected to be stronger under Trump.
However, while gold may stay volatile for about two months as the market assesses the impact of Trump’s leadership, if he introduces trading tariffs on other countries as expected, such as China, and the US dollar remains high, that would lead to global inflation.
And inflation usually supports a higher gold price.
The same would be said with more geopolitical tension under Trump.
Groups that were also looking to raise equity may now have second thoughts over doing so before Christmas, or may raise less funds and at a lower price.
Another plus for gold miners wanting to do deals following the election of Trump is that it may be easier to come across financing for transactions at better rates, say sources.
(20min delay)