Golden Energy and Resources Ltd
The coal mining and trading company, Golden Energy and Resources Ltd. has entered into a subscription agreement with Westgold Resources to subscribe for up to 36m new shares in Westgold at A$1.885 each for a total of A$67.9m (S$69.3m).
Listed on the Australian Stock Exchange (ASX), Westgold is principally engaged in gold mining in Australia and holds mining tenure positions, and numerous gold production assets in two provinces in Western Australia, namely the Eastern Goldfields and the Murchison Goldfields. This strategic move widens the group’s coal-focused mining business to include counter-cyclical commodities that can potentially bring additional value.
We believe this could potentially pan out well for GEAR and reiterate our BUY recommendation with a fair value of S$0.78 by KGI Securities Research.
Share price closed at S$0.400