Macquarie upgrades Australia's Ramelius Resources on Spartan buyout

Spartan Resources

26/03/2025 01:50

** Ramelius Resources RMS.AX rises 2.6% to A$2.21; Spartan Resources SPR.AX gains 2.3% to A$1.76

** Macquarie upgrades to "outperform", raises PT to A$2.50

** Gold miner will take over smaller peer SPR in A$2.4 bln ($1.51 bln) deal

** Ramelius, which already owns 19.9% stake in Spartan, will acquire remaining shares which would result in A$4.2 bln gold-producing entity, the companies said

** Macquarie says with SPR's high-grade resources, RMS anticipates production of more than 500 killoz per annum by FY30, a 95% increase from co's most recent group mine plan

** Adds deal set to give RMS enhanced asset quality, scale and production growth

** YTD, RMS up 7%, while SPR gains ~25%

($1 = A$1.5883)

 (Reporting by Kumar Tanishk in Bengaluru)

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