IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/silvercorp-metals-inc-139c2b2c-b1be-4cd9-92d7-257aca9924c9" target="_blank" data-smartkarma-citation="entities:38823:1" rel="noopener">Silvercorp Metals (SVM US)</a> has switched to an off-market takeover offer. The <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp Ltd (ORR AU)</a> consideration remains unchanged at A$0.19 cash and 0.0967 SVM shares per ORR share.</li>
<li>The takeover offer is conditional on a 50.1% minimum acceptance condition, achievable in the absence of a superior proposal. </li>
<li>The crucial question is whether <a href="https://www.smartkarma.com/entities/perseus-mining-ltd" target="_blank" data-smartkarma-citation="entities:15306:1" rel="noopener">Perseus Mining (PRU AU)</a> is comfortable with SVM effectively controlling ORR. We think that there is a low probability of Perseus launching a competing proposal. </li>
</ul>



Silvercorp Metals (SVM US) has switched to an off-market takeover offer. The Orecorp Ltd (ORR AU) consideration remains unchanged at A$0.19 cash and 0.0967 SVM shares per ORR share.
The takeover offer is conditional on a 50.1% minimum acceptance condition, achievable in the absence of a superior proposal. 
The crucial question is whether Perseus Mining (PRU AU) is comfortable with SVM effectively controlling ORR. We think that there is a low probability of Perseus launching a competing proposal. 


OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Thematic (Sector/Industry)

<ul>
<li>Real interest rates moving lower together with massively increasing fiscal deficits is a plus for gold.</li>
<li>Gold miners are generally poor long-term investments, but their time is close.</li>
<li>Miners’ margins are improving as revenue increases while costs decrease.</li>
</ul>


Real interest rates moving lower together with massively increasing fiscal deficits is a plus for gold.
Gold miners are generally poor long-term investments, but their time is close.
Miners’ margins are improving as revenue increases while costs decrease.


2024 High Conviction Idea -Why the Time Is Right for Gold Miners

<ul>
<li>
<a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp Ltd (ORR AU)</a> has disclosed a revised offer from <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc-139c2b2c-b1be-4cd9-92d7-257aca9924c9" target="_blank" data-smartkarma-citation="entities:38823:1" rel="noopener">Silvercorp Metals (SVM US)</a> at A$0.19 cash per share and 0.0967 SVM shares per ORR share.</li>
<li>The revised offer was necessitated due to the decline in SVM shares. Since 7 August, the revised offer is, on average, 7.8% higher than the previous offer.</li>
<li>Directors and irrevocables represent around 20% of voting rights. The revised offer should help the scheme get up. At the last close, the gross spread was 8.6%.</li>
</ul>



Orecorp Ltd (ORR AU) has disclosed a revised offer from Silvercorp Metals (SVM US) at A$0.19 cash per share and 0.0967 SVM shares per ORR share.
The revised offer was necessitated due to the decline in SVM shares. Since 7 August, the revised offer is, on average, 7.8% higher than the previous offer.
Directors and irrevocables represent around 20% of voting rights. The revised offer should help the scheme get up. At the last close, the gross spread was 8.6%.


OreCorp (ORR AU): Silvercorp Returns with a Higher Offer

<ul>
<li>The <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp Ltd (ORR AU)</a> IE considers <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc-139c2b2c-b1be-4cd9-92d7-257aca9924c9" target="_blank" data-smartkarma-citation="entities:38823:1" rel="noopener">Silvercorp Metals (SVM US)</a>’s A$0.15 cash per share and 0.0967 SVM shares per ORR share offer fair and reasonable. </li>
<li>The offer is subject to the Tanzanian Fair Competition Commission and shareholder approval. The offer is attractive compared to the adjusted exchange ratios and historical prices.</li>
<li>While the offer has suffered from the steep SVM share price decline, there has been no visible dissent from major shareholders. At the last close, the gross spread was 12.1%. </li>
</ul>


The Orecorp Ltd (ORR AU) IE considers Silvercorp Metals (SVM US)’s A$0.15 cash per share and 0.0967 SVM shares per ORR share offer fair and reasonable. 
The offer is subject to the Tanzanian Fair Competition Commission and shareholder approval. The offer is attractive compared to the adjusted exchange ratios and historical prices.
While the offer has suffered from the steep SVM share price decline, there has been no visible dissent from major shareholders. At the last close, the gross spread was 12.1%. 


OreCorp (ORR AU): A Wide Spread Heading into the 8 December Vote

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tietto-minerals-ltd" target="_blank" data-smartkarma-citation="entities:28006:1" rel="noopener">Tietto Minerals Ltd (TIE AU)</a> has disclosed a conditional proposal from <a href="https://www.smartkarma.com/entities/zhaojin-mining-industry-company-ltd-h" target="_blank" data-smartkarma-citation="entities:4626:1" rel="noopener">Zhaojin Mining Industry H (1818 HK)</a> at A$0.58 per share, a 36.5% premium to the undisturbed price of A$0.425.</li>
<li>The offer is conditional on China and Cote d’Ivoire regulatory approvals (should be forthcoming) and a 50.1% minimum acceptance condition (which can be waived).</li>
<li>The offer is light compared to peer resource multiples and recent share prices. The presence of large Chinese shareholders is a stumbling block for a rival offer. </li>
</ul>



Tietto Minerals Ltd (TIE AU) has disclosed a conditional proposal from Zhaojin Mining Industry H (1818 HK) at A$0.58 per share, a 36.5% premium to the undisturbed price of A$0.425.
The offer is conditional on China and Cote d’Ivoire regulatory approvals (should be forthcoming) and a 50.1% minimum acceptance condition (which can be waived).
The offer is light compared to peer resource multiples and recent share prices. The presence of large Chinese shareholders is a stumbling block for a rival offer. 


Tietto Minerals (TIE AU): Zhaojin’s Conditional Off-Market Takeover Offer

Australia

Capricorn Metals Ltd operates as an exploration and production company. The Company specializes in the gold exploration and production services. Capricorn Metals serves customers in Australia.

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Capricorn Metals (CMM AU)

OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

The takeover offer is conditional on a 50.1% minimum acceptance condition, which is achievable. A counteroffer by Perseus depends on whether it is...

Arun George

2024 High Conviction Idea -Why the Time Is Right for Gold Miners

The time is now right for gold miners as the gold price is set to move to new all time highs and margins expand creating a perfect storm for...

Rikki Malik

OreCorp (ORR AU): Silvercorp Returns with a Higher Offer

The revised offer was necessitated due to the decline in SVM shares. The revised offer should help the scheme get up. At the last close, the gross...

Arun George

OreCorp (ORR AU): A Wide Spread Heading into the 8 December Vote

While the offer has suffered from the steep SVM share price decline, there has been no visible dissent from major shareholders.

Arun George

Tietto Minerals (TIE AU): Zhaojin’s Conditional Off-Market Takeover Offer

The offer is light compared to peer resource multiples and recent share prices. The offer is conditional on regulatory approvals and a 50.1%...

Arun George

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