Australia's Gold Road on record high; Gold Fields bid rejection indicates relationship strain, says Jefferies

Gold Road Resources

25/03/2025 24:26

updates with share moves

** Shares of Gold Road Resources GOR.AX rise 11% to A$2.72, hitting a lifetime high

** Stock is the top gainer on the benchmark ASX 200 index .AXJO

** Miner said on Monday it had rejected Gold Fields' GFIJ.J $2.1 billion buyout bid because it believed the offer materially undervalued the co and was "highly opportunistic"

** Jefferies says announcement indicates deterioration of relationship to the point where grievances are now being aired publicly

** Deal values GOR at A$2.27 per share, which is a 9% premium to brokerage's like-for-like NPV

** However, Jefferies questions premium adequacy, suggesting it doesn't reflect control value or potential mining consolidation synergies

** 5 of 11 analysts rate the stock "buy" or higher, 5 as "hold" and 1 as "sell"; their mean PT is A$2.67 — LSEG data

** Stock up 19.5% YTD

 (Reporting by Kumar Tanishk and Nikita Maria Jino in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))