Global Equities Roundup: Market Talk

Dow Jones04-22

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1820 ET - Jefferies is heartened by media reports that Whitehaven Coal's process to sell a 20-30% stake in its recently acquired Blackwater metallurgical coal mine in Queensland is competitive. In a note, analyst Daniel Roden highlights an Australian Financial Review report that there are three potential bidders for the stake, and that a transaction is likely to complete by the end of 2024. "While we do not include this in our valuation, a successful sale for a competitive price would be viewed positively for its ability to de-lever the balance sheet," says Jefferies, noting Whitehaven's net debt totals A$1.4 billion. It values Blackwater at A$5.9 billion. (david.winning@wsj.com; @dwinningWSJ)

1814 ET - Gold Road Resources is well placed to fund a large component of any potential acquisition, says Jefferies. Gold Road this month confirmed it's in talks to buy a stake in Greenstone Gold Mines in Canada, owned by Equinox Gold and Orion Mine Finance. In a note, analyst Mitch Ryan highlights that Gold Road has A$146 million of net cash, an undrawn A$150 million debt facility, and listed investments with a market value of A$470 million. Jefferies retains a buy call on the stock, despite recent production downgrades driven by wet weather. Gold Road's share price appears to be pricing in its M&A ambitions "which we believe is creating a material disount to the long-term value of the stock," Jefferies says. (david.winning@wsj.com; @dwinningWSJ)

1807 ET - It's been a bruising period for lithium stocks, but Jefferies is confident in its buy call on Pilbara Minerals. "The current environment of improved quarter-on-quarter lithium prices coupled with production growth, as P680 adds capacity, and the company's robust balance sheet positions the share price to outperform the lithium sector," analyst Mitch Ryan says in a note. Jefferies views provisional pricing as likely to have a positive impact on cash flow in 4Q, predicting Pilbara Minerals will have net cash of A$1.8 billion at end-June. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

April 21, 2024 18:20 ET (22:20 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Global Equities Roundup: Market Talk

Comments