Murchison Mayhem: Ramelius takes Westgold to Takeovers Panel

Uranium hopeful Berkley seeks $1 billion via arbitration

May 29, 2024

The Pre-Start

  • Ramelius has taken Westgold to the takeovers panel to seek a final order that Westgold lower the break-fee in its deal with Karora and re-estimate synergies (Takeovers Panel) the interesting thing to us was the revelation that Ramelius and Westgold had entered a confidentiality agreement in November (presumably to conduct mutual DD in a Murchison tie-up). It reads to us like Ramelius has taken issue with a standstill enforcement preventing them from buying Westgold shares now? Very, very interesting… And messy.

  • Berkeley Energia filed a request for arbitration for its investments in Spain seeking US$1b in compensation (BKY)

  • Sheffield observed oversized material coming in above expectations during Thunderbird ramp-up, resulting in ~75% of the expected spiral feed being delivered to the WCP, meaning cash costs will be higher than expected, while zircon prices trend lower. It maintains it has ample cash (SFX)

  • Sierra Rutile announced the restart of operations at Area 1 and additional power capacity has been secured (SRX)

  • Black Cat has chosen Cream Mining and the contractor at Paulsens while it works towards being funded to recommence operations (BC8)

High Grade It

  • Uranium player, Berkeley Energia filed a request for arbitration to seek $1b in damages from the Spanish government after it refused final approval (Mining.com)

  • Australia and the EU struck an agreement to increase cooperation & investment in critical minerals to loosen China’s grip (Bloomberg)

  • BHP & Anglo are still split as Mike Henry jets to London for last-ditch talks as we approach the extension deadline (The West)

  • Ivanhoe completed its Phase 3 concentrator at Kamoa-Kakula, with the first ore being fed in at the DRC complex (Mining.com)

  • China’s flagship economic cooperation program is bouncing back after a lull during the global pandemic, with Africa a primary focus, according to analysis of lending, investment and trade data (Mining.com)

  • The gold price held steady on Tuesday as the USD eased, with US inflation data the next big bit of news on investors’ agendas (Reuters)

  • Newmont restarted the Cerro Negro gold mine in Argentina after operations were halted in April following two worker deaths (S&P)

  • After hitting an all-time intraday level of a smidgen under $5.20/lb or $11,460/t in Chicago a week ago, July copper has pulled back (Mining.com)

  • Saudi Arabia is set to raise US$10-20 billion in Aramco stock sale (Capital Brief)

  • Northern Territory has introduced a bill to change its royalty regime from profit-based to gross revenue-based (Resources Review)

  • Three of the top four iron ore miners increased production in March quarter vs a year ago (S&P)

Wheelin’ n Dealin’

  • Gold Royalty Corp has purchased the copper stream for Adriatic’s Vares project from Orion for US$50 million (JMM)

  • The fate of CZR’s Robe Mesa is being held up by FIRB, who missed its own deadline half a dozen times (The West)

  • Metallica shareholders believe they are getting shortchanged in Wayne Swan-chaired Diatreme’s takeover and are proposing a tilt (The Australian)

Rattlin’ the Tin

  • Aluminium producer Novelis is seeking to raise as much as US$945m at a US$12.6b valuation in a US initial public offering (Bloomberg)

  • De Grey completed its retail entitlement offer, raising a further $85m (DEG) Roughly half the sum was bid for, leaving the underwriters to take $43m

  • Australian Gold & Copper launched an $11m capital raise (AFR, AGC)

  • EQ Resources completed a $9.5m capital raising (EQR)

Word on the Decline

  • Apparently, the announcement of MinRes’ haul road sale is imminent - potentially as early as this week.

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In the Weeds

  • India’s Modi has put nation-building at the heart of his reelection bid, with his legacy resting on a US$534b worth of infrastructure coming online (Bloomberg)

  • BYD launched its latest generation of a plug-in hybrid technology that achieves a record low fuel consumption of 2.9 litres per 100 km (62.1 miles) on depleted batteries (Reuters)

  • France’s finance minister Bruno Le Maire said that the entire world economy is at risk from a glut of cheap Chinese exports (Bloomberg)

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Devil’s in the Detail

If you were like us in our early careers, you never bothered opening the ASX Announcements titled ‘AGM Chairman’s Address’.

Now we think of them as mandatory reading. You never know what you’re going to encounter. Take, for example, yesterday’s address from Tigers’ Realm.

The ASX-listed Russian coal miner has caught its share of media attention lately. Sanction enforcement has required them to sell their mines, port and inventory in what has been. A few of our favourite excerpts are below.

The status quo on sanctions is unlikely to be lifted for many years (if not decades) and, now that we have been handed a High court judgement that “transport” at our mine and to our own port is caught under the Import Sanctions regulations (however illogical this may be) we can no longer effectively continue operations…

t is hence with a deep sense of frustration and regret that I, as Chairman, must stand before you and tell you that we have reached the end of the road…

We have balanced on this tightrope together for the last 2 years – it is now being cut at both ends…

The irony that the transaction value that we have been able in the circumstances to negotiate with the Buyer is lower than the value of the coal stock that we have sitting at the port will not escape our shareholders.

Craig Wiggill’s Chairman Address at Tiger’s Realm AGM yesterday

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Disclaimer

All information in this newsletter is for education and entertainment purposes only and is of general nature only. The hosts of Money of Mine are not financial professionals. Money of Mine are not aware of your personal financial circumstances. Before making any investment decision, you should consult a licensed financial, legal or tax professional, along with considering any relevant Product Disclosure Statement. Money of Mine does not operate under an Australian financial services licence and relies on the exemption available under the Corporations Act 2001 (Cth) in respect of any information or advice given. Money of Mine strives to ensure the accuracy and currency of the information contained in this newsletter but we do not make any representation or warranty that it is accurate, reliable or up to date. Any views expressed by the hosts of Money of Mine are their opinion only and may contain forward looking statements that may not eventuate. Money of Mine will not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of information in this newsletter.

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