Centamin Gold (CEY) Bid
CEY has been bid for by AngloGold Ashanti (ANG South Africa, AU USA). Each share of CEY will be paid 0.06983 New AngloGold Ashanti Shares and $0.125 in cash. This equates to an offer of 163p per CEY share as of last night and is a small premium to the analysts’ forecast of 158p. CEY trades at 149p as I write.
Centamin and AngloGold Ashanti in GBP
CEY was recommended at 83p on 19 October 2023. CEY shares rallied 24% on the news. I have decided to exit the position at 149p. With 3.5p of dividends, the IRR is 97% over a 327-day holding period.
Investors may wish to hold out for a higher price, but given that this is largely paid in ANG shares, the ANG share price is the key risk until the deal is completed. I will be taking profits in the Venture Portfolio because the risk/reward is no longer appealing. Once again, the analysts’ forecast proves itself extremely effective in a takeover situation. CEY has moved from a substantial discount to being valued more in line with the gold mining sector.
CEY Catches up with the Sector
As this gold bull market continues, the alpha will shift from operations to exploration. This is where future Venture recommendations are likely to be focused.
A Venture Portfolio Update should be ready this week.
Action
Sell Centamin Gold (CEY).
Venture was established on 7 September 2023. There are 31 current stocks held and four exits shown below.
Please let me know your thoughts by emailing me at venture@bytetree.com or tweeting me @AtlasPulse.
Many thanks,
Charlie Morris
Editor, Venture
Venture is issued by ByteTree Asset Management Ltd, an appointed representative of Strata Global which is authorised and regulated by the Financial Conduct Authority. ByteTree Asset Management is a wholly owned subsidiary of CryptoComposite Ltd.
General - Your capital is at risk when you invest, never risk more than you can afford to lose. Past performance and forecasts are not reliable indicators of future results. Bid/offer spreads, commissions, fees and other charges can reduce returns from investments. There is no guarantee dividends will be paid. Overseas shares - Some recommendations may be denominated in a currency other than sterling. The return from these may increase or decrease as a result of currency fluctuations. Any dividends will be taxed at source in the country of issue.
Funds - Fund performance relies on the performance of the underlying investments, and there is counterparty default risk which could result in a loss not represented by the underlying investment. Exchange Traded Funds (ETFs) with derivative exposure (leveraged or inverted ETFs) are highly speculative and are not suitable for risk-averse investors.
Bonds - Investing in bonds carries interest rate risk. A bondholder has committed to receiving a fixed rate of return for a fixed period. If the market interest rate rises from the date of the bond's purchase, the bond's price will fall. There is also the risk that the bond issuer could default on their obligations to pay interest as scheduled, or to repay capital at the maturity of the bond.
Taxation - Profits from investments, and any profits from converting cryptocurrency back into fiat currency is subject to capital gains tax. Tax treatment depends on individual circumstances and may be subject to change.
Investment Director: Charlie Morris. Editors or contributors may have an interest in recommendations. Information and opinions expressed do not necessarily reflect the views of other editors/contributors of CryptoComposite Ltd. ByteTree Asset Management (FRN 933150) is an Appointed Representative of Strata Global Ltd (FRN 563834), which is regulated by the Financial Conduct Authority.
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