Australia's AIC Mines' takeover offer for Demetallica logical - Jefferies

AIC Mines

19/09/2022 23:00

** Jefferies says AIC Mines'  A1M.AX  takeover offer for
Demetallica  DRM.AX  is 'logical' and would be beneficial for
both entities
    ** Jefferies raises PT on AIC to A$0.70 from A$0.65,
maintains 'buy' rating
    ** The gold-copper explorer on Monday said it will acquire
DRM, valuing it at A$36 mln ($24.22 mln)  urn:newsml:reuters.com:*:nTUE5QLSKJ
    ** Brokerage sees the acquisition giving AIC's Eloise
operations in North Queensland a mine life of 13 years to FY35
    ** Recovering copper price and management's ability to
leverage value-accretive deals, positions co to benefit -
Jefferies 
   ** Three analysts covering the stock rate it "buy" or higher;
their median PT is A$0.70– Refinitiv Eikon data 
    ** YTD stock has fallen nearly 2% 
    



($1 = 1.4865 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))