..”We're expecting a near-tern restart processing largely high-grade UG ore sources for production of 160koz+ p.a. over a solid mine life. This would generate ~$250m p.a of free cashflows (FCF), implying Spartar is trading at ~4x 2yr forward FCF. As expected, Spartan has attracted corporate interest. Nearby Ramelius has acquired an 18% stake through a share raid. Ramelius has a material production hole to fill in 2 years' time and Spartan would be an ideal combination.
With growing M&A in the broader region, the likelihood of competing interest is high. Takeover offers for strategic growth assets are typically at a minimum premium of 30%. Spartan' management are well aligned and doing an excellent job.
Given Spartan is well funded and progressing very well, they are unlikely to accent a takeover at less than a full premium…”
”We're expecting a near-tern restart processing largely high-grade UG ore sources for production of 160koz+ p.a. over a solid mine life”..
I am going to go out on a limb here and presume 160koz a year, equating to a quarter of a million dollars worth, is tasty ? (With or without the plus?)
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