Silver Lake Resources (SLR AU, HOLD, Price Target A$1.70) voted to approve the Scheme of Arrangement on Friday, that will see RED acquire 100% of the shares in SLR. With the scheme now approved, the Second Court Hearing is set for 6 June, with the merger becoming effective on 7 June. Post completion of the merger, RED’s market capitalisation will rise to ~A$3.0b. RED’s share price has risen +40% over the past three months, outperforming its Western Australian Gold Producer peer group. Incorporating the recent softness in gold prices has driven a 4% drop in our price target from A$0.52 to A$0.50 and with the stock trading just 11% above our price target we downgrade our rating from Buy to HOLD.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
