RMS tumbled -7.6% on Wednesday after news emerged they had approached Westgold (WGX) for a $3bn gold merger; WGX rallied over 6%. This consolidation/bid follows on the heels of Newmont’s (NEM US) purchase of Newcrest (NCM), but by all accounts, WGX has rebuffed the approach, which included some scrip in the deal – based on yesterday’s close; RMS is valued at around $2.2bn and WGX’s $1.1bn. There is a “piggy in the middle” of this approach with WGX already looking to buy Karora Resources, also a previous target of RMS – it’s all too messy for us.
- We prefer both Evolution (EVN) and Northern Star (NST) at the larger end, and Silver Lake Resources (SLR) at the smaller end.
MM is neutral towards RMS
Add To Hit List
