Question on EVN & A2M

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Question asked 31/07/2021

Question on EVN & A2M

Hi , EVN is doing a SPP at 3.85 ....the share price is around $4.20 do you think is good value ? and also as I already hold shares and have about 5 % exposure and also hold a small amount of NCM and NST ...so I don’t want my exposure to be too high to gold ....would it make sense for me or others to sell some of our EVN and buy it back through the SPP ....knowing it is not personal advice ....but just does it make any sense to do that ? . Also at $6.00 is A2M a buy ? - Thanks Glenn.

Answer

Hi Glenn,

We can’t provide personal advice around what you should do. MM likes gold stocks moving into 2022, ultimately we are targeting ~30% upside for the precious metal with our preferred exposure via Newcrest Mining (NCM), however we feel fully committed with our 7% exposure and don’t plan to increase the holding or overall weighting.

As for a2 Milk (A2M) this NZ based business has become a “hot potato” since China recently flexed its regulatory muscle in recent days, we are more likely to take a loss here as opposed to increasing our exposure

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Evolution Mining (EVN)

LAST UPDATED 31/07/2021 08:40

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