Thursday, 23 May 2013

UPDATE: Afferro Mining results underline its strong financial position

The release of Afferro Mining’s (LON:AFF) (CVE:AFF) quarterly results underlined its strong financial position.
However, the stock succumbed to a bout of profit-taking in the morning session to trade at a modest discount to the cash element of a putative bid from International Mining & Infrastructure (LON:IMIC).
Brokers described as “largely historic” the figures to the end of March, which showed the group had cash and short-term investments of US$84mln and posted a loss from operations of just over US$1mln.
The company, which owns the 2.5bn tonne Nkout iron ore project in Cameroon, on Wednesday said it was backing an “in-principle” offer from IMIC that vales the group at US$190mln (£126mln), or 120 pence a share.
Currently, the shares are changing hands for 76 pence a share, or 4 pence below the cash element of IMIC’s offer. TheAIM-listed Africa-focused infrastructure group is also offering a loan note worth a further 40 pence a share.
“This quarterly update is largely historic in the context of the agreement between IMIC and Afferro management to proceed with the revised offer from IMIC,” said City broker SP Angel.

No comments:

Post a Comment