May. 21 at 12:42 PM
$AAUCF
Do look at Allied Gold.
$AAUCF is taken over by Zijin for C
$44 at C
$5.5 bln deal.
Should close by end of May. The stock is C
$36. Some are worried..
Spoke to 2 analysts. Both believe that the deal will close, possibly with a delay for regulatory approvals .
$AAUC is guiding gold production of 535k oz in 2026, up 41% yoy. And in 2027 should produce 650k oz.
$AAUCFIS net cash position of
$300 mln at year end 2025.
At the takeover price Allied trades at EV/EBITDA26 of 2.4 times and 1.2 times on 2027 production. Very cheap vs peers.
If the deal closes, investors would make 22% - not bad for a few weeks.
If it does not close, the upside is even higher, as the company should rerate to peers.
The risk- one of the mines is in unstable Mali. Allied is used to these situations, all its mines are in Africa. Still, MAli headlines make investors panick.
We have been buyers this week.
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