This merger has really devalued my lgl stocks ...Does this huge price drop indicate that the market is not pleased with this merger?
My thinking too Eddy, this correction in gold is just that a correction. The fundamental reasons for gold rising have not been altered by a o.75% cut compared to a 1% cut by the Fed. Surely this would be a good buying opportunity? Thoughts folks?
Thanks Beava, nice to see something positive on the merger, even if it is from a Fat Profits analyst, who seem to be a good contraindicator at the moment.Link to a Hot Stock report, good review on the reason to merge with Equigold http://www.theage.com.au/news/money/hot-stock/2008/03/31/1206850806208.html
Equigold has granted permits covering 6,300 square kilometers of prospective Birrimian greenstone belts. This equates to approximately 460 kilometres of strike extent of greenstone belts that have received minimal modern exploration. The greenstone belts in Ivory Coast are similar to or extensions of belts that have demonstrated gold abundances in the surrounding countries of Ghana, Mali, Burkina Faso, Niger and Guinea. This West African geological setting has yielded numerous significant gold discoveries in the above countries and in Ivory Coast over recent years.
In addition to the above licenses, Equigold has a further 10 permit areas under application at 30 June 2007. These tenements and cover 8,300 square kilometres and when granted will take Equigold’s permit area to a massive 15,000 square kilometres, covering approximately 780 kilometres of prospective strike. The Company considers these ground holdings to provide an excellent opportunity to discover further significant gold deposits. The Company is aggressively exploring this licence package, with a significant budget allocated to both regional and resource definition exploration work in the coming years. Equigold now has exclusive use of four drill rigs in Ivory Coast, two RAB rigs, an RC rig and a diamond rig. These rigs enable the Company to drill in excess of 100,000 metres of drilling per annum.
Exploration efforts during the year have continued to reinforce the Board’s view that the broader Bonikro area (the area within a 25 kilometre radius of Bonikro) has the potential to ultimately yield a mineable gold portfolio of between 2.5 to 3.0 million ounces. Exploration efforts around the Bonikro Gold Project are focused on building resources towards this target to augment the first stage project already under construction and due for first gold production in April 2008.
0850 [Dow Jones] Newcrest Mining (NCM.AU) could raise between A$320 million and A$350 million from the sale of its Cracow gold mine, Credit Suisse says. Says the consideration is likely to be cash and that Newcrest will not proceed with a sale unless it is value-accretive. Says Newcrest needs to manage a disproportionate growth in its copper earnings relative to gold earnings in the future. "An acquisition by NCM of Lihir Gold (LGL.AU) would rebalance NCM's copper to gold inventory and largely alleviate NCM's medium-term copper production growth dilution issue," CS says. Maintains Outperform rating with A$45 target price. (APW)
Very unusual eddy. Must be an error. That's half it's market cap isn't it? Can't think of any reason. If it was a big buyer, on market, it would have reflected in an sp jump as well I think.Massive spike in volume today on LGL - 1.281 bil shares traded! Can anyone explain this? Anything to do with a takeover?
My data makes volume out to be 12,808,381 shares traded. It's probably worth checking with your provider.Very unusual eddy. Must be an error.
3.15am ??? Big night? LOLMy data makes volume out to be 12,808,381 shares traded. It's probably worth checking with your provider.
I just cross checked against ASX.com.au and that gives 12,808,381 as well.I have 1.2b ish on two seperate providers.
Big Charts and Interactive Charts.
Equigold, Lihir move forward on merger
10/04/2008 By: John Winters
Equigold NL (EQI) and Lihir Gold Limited (LGL) said a draft scheme booklet had been lodged for review with the Australian Securities and Investments Commission (ASIC) over the proposed merger of the two companies. Upon completion of the ASIC review, Equigold would be able to apply for a shareholder meeting to approve the scheme.
Equigold and Lihir said they both maintain strong and unanimous support for the merger and said the companies were working together very closely to implement the scheme.
Last month, the two companies announced they would merge through a scheme of arrangement to form a $9 billion business.
The combined group would have assets in Australia, West Africa and Papua New Guinea, producing in excess of 1.2 million ounces of gold a year from 2009.
“Equigold directors intend to vote all of the shares that they hold (or which are held on their behalf) in favour of the merger, in the absence of a superior proposal,” the groups announced in a statement.
“There has been strong shareholder support for the merger and Equigold and LGL look forward to implementing the scheme and delivering on the many benefits the combination will deliver for shareholders of both companies.”
The Equigold shareholder meeting is expected to be held in late May/early June 2008.
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