Tribune Resources Limited Rejects Northern Star’s Offer – What You Need To Know

Tribune Resources Limited’s (ASX:TBR) shares edged up 0.5% on December 31, 2018, as the group has rejected the Northern Star’s offer and communicated the same to Northern Star. This refers to the announcement on 13th November 2018 by Northern Star Resources Limited in relation to Northern Star’s unsolicited $112.5 million offer for company’s 36.75% interest in the East Kundana Joint Venture and its unsolicited offer for Rand Mining Limited’s 12.25% interest in the East Kundana Joint Venture.

Tribune Resources Ltd is a mineral mining company which explores and develops mining sites. The company got listed on ASX in 1989.Â

The Tribune Board of Directors has concluded that the offer significantly undervalues Tribune’s interest in the East Kundana Joint Venture. For the conclusion, the Board has taken financial advice from its financial adviser, Argonaut. Argonaut analyzed Tribune’s interest in the East Kundana Joint Venture by way of comparable company and transaction analyses and discounted cash flow (DCF) modelling.

Quarterly Performances: During the quarter, 207,666 tonnes of East Kundana Joint Venture ore were processed at the Kanowna Plant, and 50,112 tonnes of East Kundana Joint Venture ore was processed at the Greenfields Mill. 23,878 oz of gold and 4,073 oz of silver were credited to Rand and Tribune Bullion Accounts. During the Quarter, the company and its controlled entity sold most of its gold inventory with the proceeds used to cover working capital and the dividends paid and declared to shareholders.

A dividend of 20 cents per ordinary share, fully franked based on a tax rate of 30% was paid to shareholders on 14 September 2018 and a fully franked 10 cents per ordinary share was also paid by controlled entity Rand Mining Ltd on 14 September 2018.

The company also paid a special dividend of $3.50 per ordinary share to shareholders on 1 October 2018, and Rand Mining Ltd has also paid a special dividend of $1.25 per ordinary share on 4 October 2018.

The company has also extended the share buyback until 29 September 2019.

FY18 Financial Performances: The East Kundana Joint Venture reported Mineral Resource estimate is 10.51 million tonnes at 6.1 g/t Au for 2.06 million ounces and the East Kundana Joint Venture reported Ore reserve is 5.23 million tonnes at 6.3 g/t Au for 1.06 million ounces.

The company generated revenues of $180,015,211 in 2018, representing an upside of 31.7% over the $136,686,893 recorded in the corresponding period in 2017. The Company’s net profit after income tax for the year stood at $54,424,492, representing an upside of 24.6% over the prior year which was $43,688,873. On Balance Sheet front, Net Assets has increased by 26.7% to $283,066,307 in FY18 over the $223,453,771 in the corresponding period in 2017. The company has maintained Cash and cash equivalents of $13,163,405.

We will now look at today’s performance of TBR. On December 31, 2018, Tribune Resources Limited ended the session on the positive note as the stock price has settled at A$4.020. The market capitalization of the company stood at circa $222.01 Million. The stock price of the company is trading towards the lower range. Let us now see how the stock has been performing from the past few months. In the time span of the previous six and three months, the stock delivered the returns of -0.01% and -20%, respectively. However, during the last one month, SYR delivered the return of -14.16%.

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