Ramelius Resources shares jump on Macquarie upgrade
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The news: Ramelius Resources was the best performing ASX 200 stock in early trading after Macquarie upgraded the gold miner following its $2.4 billion deal to acquire smaller rival Spartan Resources.
The numbers: Ramelius shares were up 4.4% to $2.25 at 10:40am AEDT. Spartan shares were also trading higher, rising 3.5% to $1.78.
Macquarie upgraded Ramelius from 'neutral' to 'outperform' and lifted its target price 9% to $2.50.
The context: Macquarie's analysts noted that Ramelius expects an annual production uplift of 500,000 ounces by FY30 following the acquisition, representing a 95% increase from the miner's last mine plan.
They said the deal presents an opportunity to boost asset quality, scale and production growth, underpinned by high-grade resources at Spartan's flagship Dalgaranga mine in Western Australia.
The source: Macquarie research
