A note has been issued this morning stating that the planned merger between HICL and The Renewables Infrastructure Group now won’t proceed. Whilst management of both companies agree that that there’s strategic rationale here, engagement with shareholders hasn’t yielded a commensurate level of support. The note stresses that each business can continue to thrive independently. The HICL share price is up almost 4% in early trade although The Renewables Infrastructure Group share price was down a similar amount at the same time.
The Australian gold and copper miner has updated the market this morning with a note advising that a feasibility study at its Havieron project confirms it as a potential world-class, low-cost mining site. Whilst pre-production spending will be just a shade over $1bn, this looks to be fully funded and would yield an internal rate of return of 22.1%. One flag there is that this is based on gold prices being sustained around the $4500 level, which may go some way to explaining the subdued market reaction. The Greatland share price is up just under 7% shortly after the open.
Blencowe is the developer of the world class Orom-Cross graphite project in Uganda, which expects to see first production in the new year. A definitive feasibility study released today has confirmed outstanding economics on the site, formally transitioning the project to the financing and development phase. An IRR of 96% is being flagged and the fact this is a project taking place outside of China is also seen as a USP. The Blencowe share price was up 14% at 8.45am.
Most read news on Investegate this morning
Statement re Airbus A320 Family Aircraft - - easyJet (EZJ)
Havieron Project – Feasibility Study - - Greatland Gold (GGP)
Update on the Combination of HICL and TRIG - - HICL Infrastructure (HICL)
