Spartan Resources (SPR)
Interest in your thoughts around current price of SPR.
The Latest Q&A
Answer
Hi Colin,
We looked at $1.8bn gold company Spartan Resources (SPR) in late 2024, it’s a company with plenty going on and we wouldn’t be surprised to see it taken over as the local gold sector continues to consolidate.
- SPR sparked M&A speculation following the arrival of Ramelius (RMS) on SPR’s share register, in June 2024, RMS acquired an 8.9% stake in SPR, viewing it as a strategic investment. By December 2024, RMS had increased its shareholding to 18.3% and participated in Spartan’s $220 million equity raising, which aimed to fund the development of Spartan’s Dalgaranga Gold Project and other exploration activities.
With a market capitalisation of A$1.8 billion, the company is on the expensive side for an explorer, but we could see the potential for Dalgaranga to rival the size of Ramelius’ neighbouring 6moz Mt Magnet operation.
- We like the prospects for SPR into 2025 with a takeover feeling possible, and with gold trading around $US2900/oz the high valuation concerns are fading.
