Bullabulling Gold: 'Norton Gold Fields Cash Offer Inadequate & Opportunistic'
Bullabulling is fighting back.
In a formal announcement to shareholders, Bullabulling Gold Limited rejected Norton Gold Fields’ cash offer, calling it ‘inadequate and opportunistic.’ Norton Gold had offered 7 cents cash for every Bullabulling Gold share.
Norton chief executive Dianmin Chen said Bullabulling shareholders needed to be realistic about their company’s ability to raise capital and develop their flagship gold project, which is near Coolgardie in Western Australia.
''They don't have money to pay the drillers, they don't have money to pay the directors, how can they have money to pay the feasibility study without substantially diluting the shareholders value,'' he said.
''The shareholders of Bullabulling should really understand what the existing management can do with the project, and without substantial changes I think the project would be very difficult to get off the ground and to get into operations.''
Bullabulling dismissed the comments and recommended its shareholders do not accept the deal. Almost 42 percent of shareholders have reportedly pledged to reject the offer.
The company’s managing director Brett Lambert said there are still key milestones to be achieved within the next year that should make the stock more attractive to investors.
Shares in Bullabulling have been trading above the 7 cents mark for several days, suggesting the market expects an improved offer from Norton soon. Bullabulling hopes to report a reserve of about 2.5 million ounces of gold.
In the announcement, Bullabulling noted its share price is trading at a premium to the Norton offer price on both the ASX and AIM. The company is currently preparing its Target’s Statement in response to the offer and Bidder’s statement.
Bullabulling Gold Limited is a mining company focused on the exploration and production of gold in Western Australia.
The company plans to complete its definitive feasibility study by March 15.
Copper production from top ten companies to increase by 3.8%
Copper production from the world’s top companies is set to increase by up to 3.8% this year, following a fall of 0.2% in 2020, GlobalData analysis reveals. Last year’s marginal slump saw production drop to 11.76 million tonnes (Mt).
The initial impact of the COVID-19 pandemic on mining operations was immense, however, six of the ten largest copper producers succeeded in increasing output last year. In 2021, copper production from the top ten copper companies is expected to bounce back, rising by up to 3.8%, to reach 12.2Mt, according to GlobalData, a leading data and analytics company.
The highest increase in copper production was by Canada’s First Quantum, which, despite all the challenges, reported 10.4% growth in 2020. The company’s Sentinel mine in Zambia and Cobre Panama were key contributors to this growth. While the latter remained under care and maintenance between April and August 2020, it delivered record production levels during the subsequent months.
Codelco, the world’s largest producer of the red metal used in electric vehicles, also bucked the trend.
Vinneth Bajaj, Associate Project Manager at GlobalData, commented: “Despite Codelco reporting over 3,400 active cases during July 2020, the company achieved 1.2% growth in its production in 2020. The company implemented a four-phase plan, as part of the COVID-19 measures, to ensure the health and safety of its employees, while also avoiding any significant impact to its copper output.”
Although the overall impact was minimal, declines in production were observed from Glencore (8.2%), Antofagasta (4.7%), BHP (3.9%) and Freeport McMoRan (1.3%). Reduced operational workforces due to COVID-19 measures, lower ore grades and production halts due to maintenance were the key disruptors to output during 2020.
The move towards electric vehicles and clean energy from renewables sources such as solar panels and wind turbines has driven the copper price to all-time highs. Copper has been among the best performers over the last month where metals ranging from aluminum to iron ore have surged to their highest prices in years. The rally is being fueled by stimulus measures, near-zero interest rates and signs that economies are recovering from the global pandemic.