In today’s briefing:
- Newmont Proposes Taking Newcrest Back Into The Fold
- Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer
- Ambuja Cements – Quick Insight on Valuation
- Major Commodity Fund Outflows Continue in January
- Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over
Newmont Proposes Taking Newcrest Back Into The Fold
- Newmont Mining (NEM US), the world’s largest gold miner, has pitched a non-binding, all-scrip proposal for Newcrest Mining (NCM AU), Australia’s largest listed gold company.
- The proposal offers 0.38 Newmont shares for every Newcrest share, or an indicative Offer price of A$27.16/share, a 21% premium to last close. An earlier proposal from Newmont was rejected.
- The proposal is subject to a raft of conditions, including granting of exclusivity to Newmont, due diligence, Newmont shareholder approval, and regulatory approvals, including FIRB.
Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer
- Newcrest Mining (NCM AU) confirmed a non-binding indicative privatisation proposal from Newmont Mining (NEM US) at 0.380 Newmont shares per Newcrest share.
- The offer values Newcrest at a discount to Tier 1 gold producer EV/Resource multiples. Also, the offer carries the volatility risk around Newmont shares and FX rates.
- The offer underscores Newcrest’s value and helps the Board seek better terms. There is a possibility of a counterbid from other Tier 1 producers such as Barrick Gold (GOLD US).
Ambuja Cements – Quick Insight on Valuation
- Cement sector is witnessing a margin recovery and valuations are reasonable.
- Ambuja Cements, the second largest in the sector provides a tactical opportunity for a valuation pop.
- Avoid | as any inclusion amounts to adding to the risk rather than to the return of the portfolio.
Major Commodity Fund Outflows Continue in January
- Glencore said last week that its copper production fell 12% in 2022.
- The miner and trader said it produced 1.06 million tonnes of copper last year and kept its 2023 outlook unchanged at around 1.04 million tonnes.
- Many miners revise their copper output lower, as extreme weather, labor issues, or lower grades have caused companies to deal with problems and limit the output accordingly.
Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over
- Greatpower Nickel & Cobalt Materials (1919613D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO.
- Greatpower Nickel and Cobalt Materials (GNCM) is a supplier of new energy battery materials in China, with a dual focus on nickel and cobalt for the production of cathode materials.
- The firm has made itself one of the top Chinese players in terms of cobalt refining by sales volume and nickel by trading volume. However, its profitability was significantly impacted.
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