When AngloGold Ashanti unveiled a £1.9billion takeover of London-listed gold miner Centamin last week, the South African firm described the deal as ‘highly compelling’.
Centamin owns a world-class mine in Egypt that will boost AngloGold’s annual production by more than 15 per cent.
In return, Centamin investors have been asked to swap the bulk of their shares for AngloGold stock plus 12.5 cents (9.5p) in cash.
A nugget?: While gold is at an all-time high, gold miners are not
The blend valued each Centamin share at £1.63 on the day of the deal, but the price began to slip last week as AngloGold shares fell.
Midas recommended Centamin at 62p in 2015. After a bumpy ride, the stock hit £1.20 before AngloGold pounced and ended the week at £1.56.
Midas verdict: While gold is at an all-time high, gold miners are not. The South Africans have spotted a bargain: this story may have further to run. Sit tight.
Traded on: Main market Ticker: CEY Contact: Centamin.com
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