Resolute Mining will sell Ravenswood gold mine for $50m cash, a $50m promissory note and up to $200m in contingent payments. Macquarie values the deal at $150m.
While the deal provides balance sheet relief, the broker suggests that the ramp up of Syama and the refinancing of the Taurus facility remain the key catalysts.
Outperform rating maintained. Target is raised to $1.40 from $1.30.
Sector: Materials.
Target price is $1.40.Current Price is $1.19. Difference: $0.21 – (brackets indicate current price is over target). If RSG meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
