UK 16:14 Monday, 26 October 2026
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Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Amara Mining* (AMA) has announced a recommended offer from Australia-headquartered Perseus Mining, with Amara Chairman and CEO John McGloin emphasising “Perseus has the strong balance sheet to move Yaoure into production and an experienced operating team. This deal therefore addresses two of the major risks facing a junior developer”
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Comments
Wadhamite
Having Perseus warrants with an exercise price slightly above today’s close seems like a dream ticket if gold is starting a new bull run. Perseus shares are 90% plus of their highs set when gold was near $2000 per ounce. If gold continues to rise they may be worth a fortune in short order. This looks a great chance for retail investors to access such instruments and I’d like to back up the truck, but I’m unsure as to how the transaction proceeds. Any idea how the warrants or Australian listed shares will work for us UK investors Tom? Cheers.
Duck and Dive
Hopefully you boys will be keeping a close eye on Perseus and especially Edikan. Of course, when they say “For the year ended 30th June 2016, Edikan is expected to produce between 172,000 and 192,000 ounces of gold and is free cash flow positive before capital investment”, what they really mean is that Edikan isn’t generating cash and is not likely to do so until the reinvestment programme is completed. Amara shareholders will want to know how much of Perseus’ current cash is likely to be gobbled up by the Edikan reinvestment programme – and what impact this cash outflow is likely to have on Perseus’ share price in the near and mid term.
Having dropped 11% on the news, Perseus’ share price bounced back by 8% yesterday; but where it settles and any new trend established will have a direct bearing on the actual value of this offer. They might have won the day with an all-cash offer but presumably their cash is earmarked for Edikan. With so far only 16% of Amara shareholders – and just one of numerous institutional holders – pledged to support the offer, it looks like Perseus may have miscalculated by relying on the recommendation of the Amara directors (who hardly have any skin in the game).
wildrides
I have kept some free runners , sold the rest and will put that into Minoan . All good under the hood ……… just have a feeling it will get a bit complex keeping track of value now , what with little spare time to monitor and me being thick as well . I would be bound to cock it up and lose my gains . KISS.