Perth broker Euroz Securities says Mineral Resources’ (ASX: MIN) scrip offer of 3c-a-share equivalent represents a good premium on the recent trading price of Atlas Iron (ASX: AGO), which has been sold off in line with the falling iron ore price and widening low-grade discount.
Plus, Macquarie tips Kirkland Lake stock to ‘outperform’ thanks in no small part to its exceptional Fosterville gold mine in Victoria.
Zinc prices have come off a touch from the 10-year highs seen in the opening months of the year. But at the current price of $US1.47/lb - more than twice its low in 2016 – there can be no complaints about the metal’s performance, one driven by the possibility of an actual physical supply pinch if the world’s official and hidden stocks continue their dramatic slide.
Oil at a three-year high and gold not far behind were the best indicators this week that financial markets are becoming more volatile and while it might seem hard to pick winners at times like these, they are actually quite obvious – they’re stocks exposed to gold and oil.
The past fortnight has brought major mining M&A and analysts have forecast a new wave of corporate activity, writes Kristie Batten in Miningnews, citing Rio Tinto’s recent US$4.15 billion from Australian coal, Oz Minerals surprise $442 million takeover of Avanco and Mineral Resources’ $280 million scrip deal with Atlas Iron.
Venturex Resources (ASX: VXR) is attracting investor attention as it pushes to become a Pilbara copper-zinc producer under the leadership of a new Managing Director, writes veteran resources writer Barry FitzGerald in his weekly Garimpeiro column in Stockhead.
Rejuvenated gold producer Red 5 Limited (ASX: RED) is trading at around half the valuation of many of its Australian gold peers, according to respected Sydney-based analyst Warwick Grigor of Far East Capital.