In today’s briefing:
- MV Global Junior Gold Miners Index Rebalance: 7 Adds & Other Changes Lead to US$610m Trade
- Ramelius/Spartan Merger: MergeCo Close to ASX100 Index Inclusion
- Spartan Resources (SPR AU): A Rumoured Merger with Ramelius Resources (RMS AU)
- Weekly Deals Digest (16 Mar) – Rio Tinto, De Grey, HKBN, ESR, Seven & I, Makino, Tenma, JXAM
- Hindustan Zinc (HZ IN) Silver Rally Is a Sweetener
- Permian Resources: The Enhanced Operational Efficiencies
- Sealed Air Corporation: Will Its Effort Towards Pricing Strategy & Resin Cost Management Pay Off?
MV Global Junior Gold Miners Index Rebalance: 7 Adds & Other Changes Lead to US$610m Trade
- There are 7 adds for the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in March. There are plenty of float and capping changes too.
- Estimated one-way turnover is 5.3% resulting in a round-trip trade of US$610m. There are 11 stocks with over 1x ADV to trade from passive trackers.
- Spartan Resources /Australi (SPR AU) and Ora Banda Mining (OBM AU) will be added to some of the S&P/ASX indices at the same time, increasing flow and impact.
Ramelius/Spartan Merger: MergeCo Close to ASX100 Index Inclusion
- Ramelius Resources (RMS AU) and Spartan Resources /Australi (SPR AU) have signed a binding Transaction Implementation Deed to enter into a ‘Transformational Combination’.
- For each share of Spartan Resources (SPR AU) held, shareholders will receive A$0.25 in cash and 0.6957 Ramelius Resources (RMS AU) shares, implying a value of A$1.78/share for Spartan Resources.
- The merger is expected to complete late July/ early August, and the merged entity could be added to the S&P/ASX 100 Index in September.
Spartan Resources (SPR AU): A Rumoured Merger with Ramelius Resources (RMS AU)
- The AFR reports that Ramelius Resources (RMS AU) and Spartan Resources /Australi (SPR AU) are in advanced talks about a low-premium merger through a scheme of arrangement.
- A merger will result in synergies due to more significant gold production and lower costs. By adding ore to Mount Magnet, Spartan could fix Ramelius’ near-term production gap.
- My analysis suggests an exchange ratio of around 0.82x (0.82x RMS share per SPR share). This implies an SPR price of A$1.80, a 12.8% premium to the last close.
Weekly Deals Digest (16 Mar) – Rio Tinto, De Grey, HKBN, ESR, Seven & I, Makino, Tenma, JXAM
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: JX Advanced Metals (5016 JP) to list on 19 March.
- Event-Driven developments: Rio Tinto Ltd (RIO AU), De Grey Mining (DEG AU), HKBN Ltd (1310 HK), ESR Group (1821 HK), Seven & I Holdings (3382 JP), Tenma Corp (7958 JP).
Hindustan Zinc (HZ IN) Silver Rally Is a Sweetener
- Hindustan Zinc (HZ IN) is set to see significant earnings upgrades driven surge in silver prices (40% EBITDA share), local currency weakness and benign costs.
- Planning for major US$2-2.5b growth expenditure to double output over next 3=5 years.
- Valuations: Entering a strong earnings upgrades cycle. Stock can re-rate despite trading at slight premium to historic averages. Stake sales by key holders is a risk.
Permian Resources: The Enhanced Operational Efficiencies
- Permian Resources reported strong fourth-quarter and full-year 2024 results, demonstrating stability and growth in its operations.
- The company delivered its highest-ever production and free cash flow per share metrics in Q4 2024.
- Effective field execution and a focus on cost control led to a significant reduction in drilling and completion (D&C) costs, while maintaining a robust cash flow.
Sealed Air Corporation: Will Its Effort Towards Pricing Strategy & Resin Cost Management Pay Off?
- Sealed Air Corporation’s recent earnings provided a comprehensive overview of the company’s performance, touching on both achievements and areas for improvement.
- The company has been focusing on stabilizing business performance, strengthening its leadership team, and transforming its operations into two market focused segments: Food and Protective.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries