Northern Star outperforming peers off the back of Saracen deal

Northern Star Resources executive chairman Bill Beament says the company’s market outperformance has been the result of its proposed merger with Saracen Mineral Holdings (reports MiningNews).
13th November 2020
Resources Rising Stars

Northern Star Resources executive chairman Bill Beament says the company’s market outperformance has been the result of its proposed merger with Saracen Mineral Holdings (reports MiningNews).

"This has to be the most logical and unique deal in the gold space in the past decade," he told the Resources Rising Stars 2020 Investor Forum yesterday.

"It entirely changes the gold landscape in Australia."

Both companies' shares have performed strongly since the A$16 billion merger was announced five weeks ago.

Northern Star shares hit an all-time high of $17.03 on Monday, before news of a possible COVID-19 vaccine sparked a gold sector sell-off and saw shares close at $14.33 yesterday.

"Since then we've been sold off like discount cruise tickets," Beament joked.

"We're a screaming buy in the $14s."

Until Monday, Northern Star had outperformed Newcrest Mining by 22% and Evolution Mining by 10%.

While the merger won't go through until February, the integration is underway.

Saracen boss Raleigh Finlayson will be managing director of the enlarged company, Northern Star CEO Stuart Tonkin will remain in his role, and Beament will revert to non-executive chairman at the end of June 2021.

"Ral has already set up an office next to me and has put his name on the door," Beament said.

Beament said the merged entity's organic growth profile was unrivalled.

"It's been a running joke in the gold sector for about the past 10 years that flat is the new growth," he said.

"What is beautiful about putting these two companies together is our production is growing 30%."

Read more at https://www.miningnews.net/events-coverage/news/1399072/northern-star-outperforming-peers-off-the-back-of-saracen-deal

 

Image: The West Australian

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