Ramelius Resources (ASX:RMS, Restricted) made the first move on Never Never by spending ~$180.4m to acquire a 17.9% equity interest in SPR. In our view, RMS taking an 17.9% equity stake reduces competing M&A interest in Never Never. RMS has stated it currently has no intention to move to a full takeover of SPR, and we believe its 17.9% equity stake has reduced the likelihood of a third party entering the fray. We make a small increase to our Never Never mining inventory which now totals 901koz at 5.9g/t incorporating material from Never Never and Pepper, and lift our price target from $0.94 to $1.00. However, with competitive tension likely removed by the RMS investment, we downgrade our rating from Speculative Buy to Hold.
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