Today morning BHP Billiton Limited announced that it has entered into an agreement with Guyana Goldfields Inc to acquire 6.1% stakes in SolGold Plc for $35.2 million. It is to buy the slice of highly coveted Cascabel copper-gold project in Ecuador which is majorly owned and operated by SolGold.
This is not the first time that BHP is knocking the doors of copper explorer SolGold. Earlier in October, BHP proposed to buy 10% stakes in SOLG for $30 million but the offer was rejected by the London listed gold and copper miner SolGold terming it as “very inadequate.”
But this morning BHP Billiton has finally grabbed a piece of highly demanded copper-gold operations. As per the terms of agreement, BHP will buy stakes of 103.1 million shares in London listed SolGold from Guyana Goldfields Inc for 27.4 million pounds ($35.2 million). That means at the purchase price of 26.592 pence per SolGold share which represents a 20% premium to the 20-day volume-weighted average LSE price of 22.16 pence per share as determined on 4 September 2018.
BHP Chief Executive Officer, Andrew Mackenzie, said the investment in SolGold would give BHP exposure to a high-quality copper exploration project in Ecuador, which is a highly prospective location for BHP.
However, despite confirming the acquisition of 6% stakes in Ecuador copper explorer, BHP Billiton share price tumbled 1.814% to $32.480 in an early trade today, i.e. 5 September 2018 (1:29 PM AEST).
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.