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Newmont Corporation (NEM)
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Barrick Gold Corporation (ABX)
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Agnico Eagle Mines Limited (AEM)
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Karora Resources Inc. (KRR)
Q: Hi there, can you comment on the merits of KRR's news today?
Can you add any further information on Ramelius, its size, quality of assets, financials, etc?
Would this be a good fit for KRR scaling up, if it happens?
Any other rumors/speculation out there of someone else jumping in for KRR or other possibilities you feel would be better for KRR, your thoughts would be appreciated?
Thanks!
Can you add any further information on Ramelius, its size, quality of assets, financials, etc?
Would this be a good fit for KRR scaling up, if it happens?
Any other rumors/speculation out there of someone else jumping in for KRR or other possibilities you feel would be better for KRR, your thoughts would be appreciated?
Thanks!
5i Research Answer:
RMS has a market cap of AU1.7B ($1.2B US), so it would be a big bite for KRR. Trading at 14X earnings, it is reasonably priced. It is profitable with good cash flow, and has $250M net cash. We think it is a good fit for KRR, but would be quite aggressive for an $800M market cap company. KRR says its talks are 'exclusive'. But this does not rule out another party if and when an actua announcement is made. We are sure many international companies would take an interest, with AEM, NEM or ABX likely at the top of the list. We think any bid would need to be at a good premium to ward off other potential buyers.