Materials, IPO & Equity Analyst

Venkat Ramana Nandyal

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

<a href="https://www.smartkarma.com/entities/endeavour-mining-corp" target="_blank" data-smartkarma-citation="entities:25621:1" rel="noopener">Endeavour Mining (EDV CN)</a> made a hostile bid for <a href="https://www.smartkarma.com/entities/centamin-plc" target="_blank" data-smartkarma-citation="entities:21870:1" rel="noopener">Centamin PLC (CEY LN)</a> in an all-stock proposal of £1.47B or US$1.9B. The offer of 0.0846 shares of Endeavour for every share of CEY or 126.27 GBp/share is a 13% premium to Centamin’s last close price of 112.20 GBp/share. Centamin’s board has rejected tender as it was not offering enough value to its shareholders. We believe that EDV’s offer for CEY is opportunistic and the shareholders of CEY should wait for better terms as the present offer is just a 5% premium on the last 3 months' average price.  CEY is trading at 4.6x FY20 EBITDA, 1.5x book and below its peers on EV/oz of gold resources.

Endeavour Mining (EDV CN) made a hostile bid for Centamin PLC (CEY LN) in an all-stock proposal of £1.47B or US$1.9B. The offer of 0.0846 shares of Endeavour for every share of CEY or 126.27 GBp/share is a 13% premium to Centamin’s last close price of 112.20 GBp/share. Centamin’s board has rejected tender as it was not offering enough value to its shareholders. We believe that EDV’s offer for CEY is opportunistic and the shareholders of CEY should wait for better terms as the present offer is just a 5% premium on the last 3 months' average price.  CEY is trading at 4.6x FY20 EBITDA, 1.5x book and below its peers on EV/oz of gold resources.

Endeavour Bid for Centamin Gold: An Opportunistic Bid

Zijin Mining Group Co Ltd H / Event-Driven

<a href="https://www.smartkarma.com/entities/zijin-mining-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:6358:1" rel="noopener">Zijin Mining Group Co Ltd H (2899 HK)</a> announced the acquisition of <a href="https://www.smartkarma.com/entities/continental-gold-inc" target="_blank" data-smartkarma-citation="entities:25820:1" rel="noopener">Continental Gold (CNL CN)</a> in an all-cash offer of C$5.5/share or C$1.4B. <a href="https://www.smartkarma.com/entities/newmont-mining-corp" target="_blank" data-smartkarma-citation="entities:14503:1" rel="noopener">Newmont Mining (NEM US)</a> holds ~20% of Continental Gold has backed the transaction. The board of Continental has recommended the deal to its shareholders.We believe that Zijin’s offer for CNL is fair given that CNL has already returned nearly 140% YTD. The company is already trading above its peers on FY20 EBITDA and book value multiples but below on resource-based valuations.

Zijin Mining Group Co Ltd H (2899 HK) announced the acquisition of Continental Gold (CNL CN) in an all-cash offer of C$5.5/share or C$1.4B. Newmont Mining (NEM US) holds ~20% of Continental Gold has backed the transaction. The board of Continental has recommended the deal to its shareholders.We believe that Zijin’s offer for CNL is fair given that CNL has already returned nearly 140% YTD. The company is already trading above its peers on FY20 EBITDA and book value multiples but below on resource-based valuations.

Zijin Mining Acquisition of Continental Gold: Seeking Value Through Acquisition

Canada

Continental Gold Inc. operates as an exploration and development company focused on gold production. The Company engages in the acquisition, exploration, evaluation, and development of gold resource properties. Continental Gold is located in Toronto, Canada.

Continental Gold (CNL CN)

Endeavour Bid for Centamin Gold: An Opportunistic Bid

Endeavour Mining (EDV CN) made a hostile bid for Centamin PLC (CEY LN) in an all-stock proposal of £1.47B or US$1.9B. The offer of 0.0846 shares of...

Venkat Ramana Nandyal

Zijin Mining Acquisition of Continental Gold: Seeking Value Through Acquisition

Zijin Mining Group Co Ltd H (2899 HK) announced the acquisition of Continental Gold (CNL CN) in an all-cash offer of C$5.5/share or C$1.4B. Newmont...

Venkat Ramana Nandyal