Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>When lithium mining play <a href="https://www.smartkarma.com/entities/azure-minerals-ltd" target="_blank" data-smartkarma-citation="entities:16538:1" rel="noopener">Azure Minerals (AZS AU)</a> was halted this week "regarding a potential change of control transaction", <a href="https://www.smartkarma.com/entities/sociedad-quimica-y-minera-de-c" target="_blank" data-smartkarma-citation="entities:24555:1" rel="noopener">Sociedad Quimica y Minera (SQM/B CI)</a> was the obvious suitor.</li>
<li>This was confirmed this morning with a A$3.52/share Offer, a 44.3% premium to undisturbed, by way of a Scheme. A concurrent conditional off-market takeover at A$3.50/share is also present. </li>
<li>$3.50 is locked in, no matter what. Gina may take her stake up to 19.9%, but it won't affect the A$3.50 floor. But it may kickstart a competitive bidding situation. </li>
</ul>


When lithium mining play Azure Minerals (AZS AU) was halted this week "regarding a potential change of control transaction", Sociedad Quimica y Minera (SQM/B CI) was the obvious suitor.
This was confirmed this morning with a A$3.52/share Offer, a 44.3% premium to undisturbed, by way of a Scheme. A concurrent conditional off-market takeover at A$3.50/share is also present. 
$3.50 is locked in, no matter what. Gina may take her stake up to 19.9%, but it won't affect the A$3.50 floor. But it may kickstart a competitive bidding situation. 


Gina Can't "Liontown" SQM's Bid For Azure

<ul>
<li>Lithium mining play <a href="https://www.smartkarma.com/entities/azure-minerals-ltd" target="_blank" data-smartkarma-citation="entities:16538:1" rel="noopener">Azure Minerals (AZS AU)</a> went into a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02728538-6A1175570?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">trading halt</a> Monday (23 October) "regarding a potential change of control transaction". That halt has been extended to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02729716-6A1176088?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">Friday morning</a>. </li>
<li>The obvious suitor is <a href="https://www.smartkarma.com/entities/sociedad-quimica-y-minera-de-c" target="_blank" data-smartkarma-citation="entities:24555:1" rel="noopener">Sociedad Quimica y Minera de C (SQM/B CI)</a> with 19.9%, who approached Azure with a $2.31/share Offer in August but was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02697432-6A1163203?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejected</a>.</li>
<li>Mark Creasy, a major shareholder in Azure and also a direct stakeholder in Azure's flagship mine, is the key. Should a firm Offer unfold, expect a chunky premium. </li>
</ul>


Lithium mining play Azure Minerals (AZS AU) went into a trading halt Monday (23 October) "regarding a potential change of control transaction". That halt has been extended to Friday morning. 
The obvious suitor is Sociedad Quimica y Minera de C (SQM/B CI) with 19.9%, who approached Azure with a $2.31/share Offer in August but was rejected.
Mark Creasy, a major shareholder in Azure and also a direct stakeholder in Azure's flagship mine, is the key. Should a firm Offer unfold, expect a chunky premium. 


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/genesis-minerals-ltd" target="_blank" data-smartkarma-citation="entities:4650:1" rel="noopener">Genesis Minerals (GMD AU)</a> and <a href="https://www.smartkarma.com/entities/st-barbara-ltd" target="_blank" data-smartkarma-citation="entities:3764:1" rel="noopener">St Barbara Ltd (SBM AU)</a> have dropped their merger plans. Instead, GMD will acquire SBM’s Leonora gold assets for a total consideration of A$600 million.</li>
<li>The transaction is favourable for GMD shareholders. GMD is getting the assets at an attractive price. GMD will fund the acquisition through a A$450 million placement at A$1.15 per share.</li>
<li>The transaction provides a way out for long-suffering SBM shareholders as they retain exposure to gold assets and have option value on the sale of SBM’s remaining assets.</li>
</ul>



Genesis Minerals (GMD AU) and St Barbara Ltd (SBM AU) have dropped their merger plans. Instead, GMD will acquire SBM’s Leonora gold assets for a total consideration of A$600 million.
The transaction is favourable for GMD shareholders. GMD is getting the assets at an attractive price. GMD will fund the acquisition through a A$450 million placement at A$1.15 per share.
The transaction provides a way out for long-suffering SBM shareholders as they retain exposure to gold assets and have option value on the sale of SBM’s remaining assets.


Genesis Minerals (GMD AU): Alternate Transaction and Placement to Buy St Barbara’s Key Assets

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>Changes to the S&amp;P/ASX indices, <a href="https://www.smartkarma.com/entities/vaneck-vectors-rare-earth-strategic-metals-etf" target="_blank" data-smartkarma-citation="entities:32320:1" rel="noopener">VanEck Vectors Rare Earth/Strategic Metals ETF</a>, <a href="https://www.smartkarma.com/entities/vaneck-vectors-junior-gold-miners-etf" target="_blank" data-smartkarma-citation="entities:32845:1" rel="noopener">VanEck Vectors Junior Gold Miners ETF</a>, <a href="https://www.smartkarma.com/entities/vaneck-vectors-aus-equal-wei" target="_blank" data-smartkarma-citation="entities:24297:1" rel="noopener">Vaneck Aus Equal Weight ETF</a>, and other indices will be implemented 17 March.</li>
<li>There are plenty of stocks with multiple days of ADV to trade. Some pre-positioning would have taken place prior to announcement and positions adjusted in the last couple of weeks.</li>
<li>There has been a reversal in stock performance over the last few weeks and short interest has moved a lot in some stocks.</li>
</ul>


Changes to the S&amp;P/ASX indices, VanEck Vectors Rare Earth/Strategic Metals ETF, VanEck Vectors Junior Gold Miners ETF, Vaneck Aus Equal Weight ETF, and other indices will be implemented 17 March.
There are plenty of stocks with multiple days of ADV to trade. Some pre-positioning would have taken place prior to announcement and positions adjusted in the last couple of weeks.
There has been a reversal in stock performance over the last few weeks and short interest has moved a lot in some stocks.


Australia: S&P/​ASX, REMX, GDXJ, MVA, MVW, Other Flows on Friday

Harmony Gold Mining Co Ltd / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dacian-gold-ltd" target="_blank" data-smartkarma-citation="entities:5749:1" rel="noopener">Dacian Gold Ltd (DCN AU)</a>, <a href="https://www.smartkarma.com/entities/gold-resource-corp" target="_blank" data-smartkarma-citation="entities:26517:1" rel="noopener">Gold Resource (GORO US)</a> and Wallbridge Mining Co (WM CN) will be deleted from the index at the close on 17 March.</li>
<li>One way turnover is estimated at 2.8% resulting in a one-way trade of US$96m. There is over 1 day of ADV to trade on 22 stocks.</li>
<li>The largest inflows are on Triple Flag Precious Metals (TFPM US), <a href="https://www.smartkarma.com/entities/osisko-gold-royalties-ltd" target="_blank" data-smartkarma-citation="entities:25587:1" rel="noopener">Osisko Gold Royalties</a>, <a href="https://www.smartkarma.com/entities/zhaojin-mining-industry-company-ltd-h" target="_blank" data-smartkarma-citation="entities:4626:1" rel="noopener">Zhaojin Mining Industry</a>, New Found Gold (NFG CN), Yamana Gold, IAMGOLD and First Majestic Silver.</li>
</ul>



Dacian Gold Ltd (DCN AU), Gold Resource (GORO US) and Wallbridge Mining Co (WM CN) will be deleted from the index at the close on 17 March.
One way turnover is estimated at 2.8% resulting in a one-way trade of US$96m. There is over 1 day of ADV to trade on 22 stocks.
The largest inflows are on Triple Flag Precious Metals (TFPM US), Osisko Gold Royalties, Zhaojin Mining Industry, New Found Gold (NFG CN), Yamana Gold, IAMGOLD and First Majestic Silver.


MVIS Global Junior Gold Miners Index Rebalance: Three Deletions & Float Changes

Australia

Dacian Gold Limited. is a mineral exploration and development company. The Company is focused on the Mount Morgans Project which is located in the Laverton District of Western Australia's North Eastern Goldfields.

Dacian Gold Ltd (DCN AU)

Gina Can't "Liontown" SQM's Bid For Azure

The two-pronged approach sets a clean floor going forward at a minimum A$3.50/share. Trading tight at A$3.49/share. If you think this transaction...

David Blennerhassett

Azure (AZS AU): SQM The Likely Suitor

Mark Creasy, a major shreholder in Azure and also a direct stakeholder in Azure's flaship mine, is the key. Should a firm Offer unfold, expect a...

David Blennerhassett

Genesis Minerals (GMD AU): Alternate Transaction and Placement to Buy St Barbara’s Key Assets

The alternative transaction is a good result for GMD (transformative acquisition at an attractive price) and SBM (a palatable plan to generate...

Arun George

Australia: S&P/ASX, REMX, GDXJ, MVA, MVW, Other Flows on Friday

Implementation of the S&P/ASX, REMX, GDXJ, MVA and other indices take place at the close on Friday. There will be a lot of passive flow going...

Brian Freitas

MVIS Global Junior Gold Miners Index Rebalance: Three Deletions & Float Changes

There are 3 deletions for the index plus plenty of float changes. One way turnover is estimated at 2.8% resulting in a one-way trade of US$96m....

Brian Freitas

Gina Can't "Liontown" SQM's Bid For Azure

The two-pronged approach sets a clean floor going forward at a minimum A$3.50/share. Trading tight at A$3.49/share. If you think this transaction...

David Blennerhassett

Azure (AZS AU): SQM The Likely Suitor

Mark Creasy, a major shreholder in Azure and also a direct stakeholder in Azure's flaship mine, is the key. Should a firm Offer unfold, expect a...

David Blennerhassett

Genesis Minerals (GMD AU): Alternate Transaction and Placement to Buy St Barbara’s Key Assets

The alternative transaction is a good result for GMD (transformative acquisition at an attractive price) and SBM (a palatable plan to generate...

Arun George

Australia: S&P/​ASX, REMX, GDXJ, MVA, MVW, Other Flows on Friday

Implementation of the S&P/ASX, REMX, GDXJ, MVA and other indices take place at the close on Friday. There will be a lot of passive flow going...

Brian Freitas

MVIS Global Junior Gold Miners Index Rebalance: Three Deletions & Float Changes

There are 3 deletions for the index plus plenty of float changes. One way turnover is estimated at 2.8% resulting in a one-way trade of US$96m....

Brian Freitas

Australia: S&P/ASX, REMX, GDXJ, MVA, MVW, Other Flows on Friday