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SAR, SARACEN MINERAL HOLDINGS LIMITED
nipper
post Posted: Oct 6 2020, 03:56 PM
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QUOTE
It is the merger that was meant to be.... Just 11 months after mid-tier Australian gold miners Northern Star and Saracen each bought 50 per cent of the famous Kalgoorlie Super Pit in Western Australia, the pair will combine to form a $16billion giant that will be one of the biggest gold groups in the world, and the second largest in Australia behind Newcrest.
It is a deal that will immediately put the enlarged group, which will still be known as Northern Star, on the radar of both generalist investors in Australia and beyond, and specialist global gold investors, for whom scale, liquidity and cashflows matter.
Saracen Mineral Holdings boss Raleigh Finlayson has told shareholders the company cannot alone create the sort of value that will be delivered by a $16 billion merger with its partner in the Superpit mine, Northern Star.

The transaction has been pitched as a merger rather than a takeover, despite the fact it will be delivered by Northern Star issuing $5.76 billion worth of stock to Saracen shareholders to create a combined group called Northern Star.

Viewed as a scrip takeover by Northern Star, there is little premium being paid for Saracen, whose market capitalisation stood at $5.78 billion at the close of trading on Monday. In keeping with the spirit of a merger that has been endorsed by both company boards, the word premium does not appear in any of the bid documents filed to the ASX on Tuesday.

In a bid to sweeten the deal, Saracen will pay its shareholders a 3.8 dividend prior to the merger; worth about $42 million in total. Combining the scrip and the dividend, Northern Star is paying less than 1 per cent premium to Saracen's market capitalisation on Monday.


.... both up around 9% today. Endorsement, deeper market, synergies??



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Apr 28 2020, 10:33 AM
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In Reply To: nipper's post @ Dec 11 2019, 08:52 AM

And those that took up the offer must be mighty pleased.
Record production this year, gold near all time highs, and a share price approaching 12 month highs.
Wish I had put it in my list of gold stocks.
Mick



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sent from my Olivetti Typewriter.
 
nipper
post Posted: Dec 11 2019, 08:52 AM
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QUOTE
Saracen Mineral Holdings' retail component of its entitlement offer has fallen well short of its target, raising less than half the amount the company had been hoping for.

The company had passed the hat to its retail investors hoping to raise $95 million however they only received applications for entitlements totalling $37.37 million, a shortfall of $57.34 million.

The offer, announced on November 18 in order to help fund the gold miner's acquired interest in 50 per cent of Super Pit, was underwritten but still reveals a lack of confidence in the company from its retail investor base.

Investors had been entitled to one new share for every 5.75 existing Saracen shares, for an offer price of $2.95 per share.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Nov 20 2019, 01:59 PM
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In Reply To: blacksheep's post @ Nov 18 2019, 01:31 PM

SP currently $3.05 - down 10.03%

Saracen raises equity, share slump
QUOTE
Shares in gold miner Saracen Minerals have slumped today following a successful, but heavily discounted, institutional equity raise.

The company announced that it raised $701 million from investors at an issuance price of $2.95, some 11.3 per cent below its last trading price.

“We received strong support from both existing and new institutional shareholders, which is a fantastic endorsement of a transformational acquisition that underwrites Saracen’s future as a leading all-Australian gold miner,” the company’s MD Raleigh Finlayson said.

$333 million was raised through an entitlement offer with the remaining $369 million coming from an institutional placement.

https://www.shortman.com.au/stock?q=sar
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Nov 18 2019, 01:31 PM
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Transformational acquisition of 50% of Super Pit and A$796m equity raising
QUOTE
Underwrites Saracen’s future as one of Australia’s largest, longest life gold
producers with three mines in close proximity to Kalgoorlie
Not for release or distribution in the United States
18th November 2019

Saracen Mineral Holdings Ltd ACN 009 215 347 (ASX: SAR) (“Saracen” or “Company”) is pleased to announce that it
has entered into a binding sale agreement ("Sale Agreement") with Barrick Gold Corporation (“Barrick”) to acquire its
50% interest in the Kalgoorlie Consolidated Gold Mines Joint Venture (“KCGM JV”) through the purchase of 100% of the
shares in Barrick (Australia Pacific) Pty Limited (“Target”) for a price of US$750 million1 (the “Transaction”). KCGM JV
owns and operates the Super Pit gold mine in Kalgoorlie-Boulder, Western Australia.

The Super Pit is a large, high quality, long-life open-pit and underground gold mine located in the globally renowned
Golden Mile Region of Kalgoorlie-Boulder, Western Australia. The Golden Mile has produced in excess of 60Moz of
gold. The Super Pit is a large scale operation with 490koz of gold produced in FY20192 (100% basis), making it one of
the largest gold mines in Australia.

Newmont Goldcorp Corporation (“Newmont Goldcorp”), the world’s leading gold company, will be Saracen’s joint
venture partner at the Super Pit and will retain its 50% ownership interest in the KCGM JV and operatorship of the
Super Pit.
Saracen intends to raise approximately A$796 million (“Equity Raising”) via an underwritten institutional placement and
an underwritten 1 for 5.75 pro-rata accelerated non-renounceable entitlement offer to partly fund the Transaction. The
balance of the purchase price will be funded from a new A$450 million senior secured term loan.

Transaction Highlights
 Acquisition consistent with Saracen’s strategic objective to “future proof the business”
 Large scale, long life, Tier 1 gold mine with 7.3Moz3 non-JORC Ore Reserves (based on NI 43-101
guideline) representing a Reserve life of ~12 years, at historical production rates
 During the 5 year period to FY2019, Super Pit has produced on average ~660koz per annum at an all-in
sustaining cost (AISC4) of ~A$1,100/oz
 First class joint venture partner in Newmont Goldcorp, who has extensive knowledge of the asset and
significant experience in open-pit and underground operations
 Proven operation with world-class infrastructure and strong focus on safety and environmental
stewardship
 Successful track record of replacing and growing Resources and Reserves
Further growth in the mine life underpinned by a large Resource base and outstanding exploration upside
 Establishes Saracen as one of Australia’s largest gold producers with three mines in close proximity to
Kalgoorlie, anticipated to produce in excess of 600koz per annum5, with combined Reserves of ~7.0Moz6
underpinning a +10 year group mine life
 Highly accretive acquisition for Saracen shareholders across a broad range of metrics including earnings
per share, cash flow per share and net asset value per share. It is also accretive on an EV / Resource and
EV / Reserve basis



QUOTE
Investors have been offered the chance to subscribe for more Saracen shares at $2.95 per share; a 13 per cent discount to Saracen's last traded price on Friday.


https://www.afr.com/companies/mining/superp...20191118-p53bhi

Total short position as at 11/11/10 = 7.96%
https://www.shortman.com.au/stock?q=sar

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Sep 28 2019, 03:35 PM
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Saracen continues bolt-on strategy with acquisition of Sinclair Project for A$10m Deal delivers highly prospective gold tenure with extensive
infrastructure just 25km from Thunderbox

27 September 2019
QUOTE
HIGHLIGHTS
 Saracen has entered into a binding agreement to acquire the Sinclair project from Talisman Mining (ASX: TLM)
 The Sinclair project is located 25km south-west of Thunderbox and includes:
 Highly prospective yet underexplored gold tenure immediately along strike from Saracen’s Bannockburn
project area* (1.04Moz Resource¹), where recent air core drilling has highlighted additional significant anomalism
 Extensive infrastructure including a 200-person camp, mine buildings and workshops, core yard, 2km sealed airstrip,
and abundant good quality water (bore field and pipeline)
 Extensive underground mining assets including primary and secondary ventilation fans, electrical starter boxes and
refuge chambers, readily available for installation at the growing Thunderbox underground mine
 +350ktpa nickel processing plant and Mineral Resources² of 720,000t @ 2.3% Ni for 16,200t of contained nickel,
enabling value to be unlocked at the Saracen-owned Waterloo / Amorac deposits
 Key infrastructure and assets are presented in Appendix A
 Consideration is A$10m cash payable at completion and a 2.0% NSR payable on metal production from the Sinclair
tenements and non-precious metals production from the Saracen-owned Waterloo tenement (M36/473)
 The transaction is conditional upon the items listed on page 3, completion expected to occur prior to the end of October
2019
 Saracen will conduct a strategic review of its nickel assets, which will include >30,000t ¹ ² of contained nickel in Resources
within 50km of a nickel processing plant, with a view to maximising their value via a transaction at the right time


Market not that excited - SAR's SP down 2.81%. TLM's SP up 11.11%. TLM acquired Sinclair from Xstrata back in 2014 in what was then described as "a company making acquisition" The purchase price was $8 million plus a deferred $2 million payment on recommencement of mine production. Not sure what further funds TLM ploughed into Sinclair.



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 

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nipper
post Posted: Aug 20 2019, 02:27 AM
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In Reply To: blacksheep's post @ Aug 19 2019, 11:08 PM

Ah, hedging. Can spoil the best intentions.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Aug 19 2019, 11:08 PM
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In Reply To: nipper's post @ Aug 19 2019, 03:11 PM

Hasn't done much for the SP which was down 5.14% @ $3.71. I think it's probably something to do with their hedging - locked in at lower than current gold prices as noted in their recent quarterly

QUOTE
Hedging
During the quarter 142,000oz of hedging was added at A$1,908/oz. 81,500oz of hedging was delivered at A$1,747/oz (including
9,000oz of A$1,615/oz contracts pre-delivered ahead of schedule).

At 30 June 2019, the hedge book comprised 419,000oz at an average delivery price of A$1,840/oz.


Shortman recorded a notable short alert for Friday 16/8/19

QUOTE
Fri 16th Aug, 2019 6,622,334 822,038,896 0.80% 10,090,586 65.63%

https://www.shortman.com.au/stock?q=sar
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: nipper  
 
nipper
post Posted: Aug 19 2019, 03:11 PM
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KEY POINTS
Revenue ............ ($m) 556 , up 8.7%
Pre-tax profit ..... ($m) 131 , up 16.0%
Net profit ........... ($m) 92 , up 22.4%

QUOTE
Not content with a 35-fold increase in the value of its shares, Saracen Mineral Holdings has announced plans to start paying dividends.

The new dividend policy was announced on Monday as Saracen reported a 22 per cent rise in profits to $92.5 million - slightly lower than the $101 million analyst consensus published by Bloomberg, but the sixth consecutive year that Saracen has grown its earnings.




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Jan 15 2019, 09:50 AM
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In Reply To: blacksheep's post @ Apr 17 2018, 01:51 PM

Kerry Stokes' private investment coy - Wroxby Pty Ltd - sold down its subholding between 7/1/2019 - 10/1/2019. Nicely done and pretty much at the 52 week high

Note - seems there is another issue with uploading charts? Keep getting this message - "Error Upload failed. Please ask the administrator to ensure the uploads directory is writeable"



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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