Sunday night’s crystal ball night, and this week it’s pretty obvious to see where the action will be.
China’s March PMI numbers, out late on Friday, provided further evidence of economic recovery, exceeding analysts’ expectations across manufacturing, construction and services.
When China’s growing, commodity prices tend to flourish and Australia’s resources sector generally fires.
So with the numbers fresh in investors’ minds, we expect some cash-strapped miners and explorers to be in the market as early as Monday morning, topping up their cash reserves. We spotted the $220 million-listed Meteoric Resources trying to beat the pack with an early deal on Sunday.
Elsewhere, we’ve been sniffing around Tyro Payments, where six months of takeover talks are finally coming to a head. We’re tipping a revised offer from Potentia Capital - potentially a revised range at about $1.75 to $1.80 a share - and a round of black box due diligence.
ASX-listed Meteoric Resources is seeking to capitalise on its own meteoric rise, tapping equity markets early this week to help cover a near-term funding gap.
Sources close to the company said CBA had clearly communicated to BWX’s bosses – who were hoping for another extension until May – that they had to find a solution quickly and wean themselves off the bank’s largesse, which included a working capital facility in December.
Allegro struck at a time when Slater & Gordon started to show signs of improvement. The company posted $110 million net revenue (up 37 per cent) and $16.7 million after-tax profit (versus a $7.7 million loss) in the December half.
Citi’s resources bankers have been joined by Standard Chartered’s M&A advisory’s team on the sell-side, as NSW’s Northparkes copper and gold asset fields interest from suitors.
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