In today’s briefing:
- Bondalti/Ercros: Board Will Seek a Sweetening
- ETU: Company Update & 2024 Exploration Program
Bondalti/Ercros: Board Will Seek a Sweetening
- Ercros (ECR SM) ‘s advisors will seek an improvement in Bondalti’s €3.6/share offer, which comes amidst a sharp decline in EBITDA compared to 2022, and launched at the bottom of the cycle.
- An improved offer price of €4.4/share, a 22% increase, would represent 6x EV/25e EBITDA, 11.3x 25e P/E, and thus could gain support from the Board.
- Gross spread is 1.25%. Considering the potential for an improved offer price, I’d be long.
ETU: Company Update & 2024 Exploration Program
- ETU’s land package remains one of the largest (681km2) and most prospective in Ontario, sitting in a top mining jurisdiction in the world spanning 80km along the Porcupine-Destor Fault hosting >100Moz Au.
- The Company has laid out its 2024 exploration plans, highlighting a new focus to high-grade gold showings along the eastern extent of the Hawkins zone – a high probability target for resource growth.
- ETU remains to be one of the cheapest stocks and hosts one of the largest land packages amongst junior explorers.
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