Now there’s one way of seeing off an unwanted takeover offer - do what the putative bidder doesn’t want to do, such as announce a capital raising when the bidder, Independence Group made such a move a condition of the offer failing.
Nickel, copper and cobalt had a golden tinge for Perth-based Independence Group yesterday which reported record revenues and profits from the first full-year of operation at its Nova mine in WA and improved operating performance at its Tropicana joint venture.
Independence Group’s (IGO) recasting of itself as a battery materials specialist following the recent sale of its second-rate zinc/copper assets for $120 million requires the establishment of a supporting multi-decade nickel, copper and cobalt resource base.
The company has made an all-scrip offer for Panoramic Resources ((PAN)). This would provide Independence Group with a third mine. An all-scrip offer, despite the strong cash position, makes sense in the broker's view, given the recent support from the gold price.
The pre-feasibility study on the nickel sulphate option has been extended to the December quarter in order to "optimise the study". Credit Suisse suspects the company is likely buying time for nickel sulphide concentrate offtake agreements to be negotiated and replace expiring contracts.