In today’s briefing:
- AUB Group Placement – Well Flagged Selldown Will Clear the Overhang
- Alkane Resources – Seamlessly shifting to Roswell
AUB Group Placement – Well Flagged Selldown Will Clear the Overhang
- Odyssey is looking to raise A$277m (US$186m) from selling its entire stake in AUB Group Limited (AUB AU).
- The PE has been invested since May 2022 with its stake subjected to a two-year escrow period. There have been media reports surrounding the selldown over the past few months.
- In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.
Alkane Resources – Seamlessly shifting to Roswell
On 14 October, Alkane released its Q125 quarterly activities report, showing almost all of its operating parameters in line with both guidance and our expectations for the full year. The exceptions were its head grade, which exceeded the upper end of the guidance range by 6.1%, and AISC, which improved upon the lower end of the guidance range by 9.1%. Most significant however was confirmation that AISC guidance reflects a one-off cost for decline development that is accounted as sustaining capital (rather than as an operating expense) and as a result we have increased our earnings estimates for FY25 by A$21.2m, or 85.8x (8,479%).
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