This is not a joke: Rare cat sighting could boost HudBay bid for Augusta


The rare sighting of an ocelot will delay the permitting process for Augusta Resource's (AZC +1%) Rosemont copper project, and some analysts think the uncertainty could raise the probability of success for HudBay Minerals' (HBM -1.4%) hostile takeover bid.

Desjardins analyst Jackie Przybylowski says the news could encourage AZC shareholders to tender to HBM’s bid, noting that HBM had said permitting for Rosemont would take much longer than AZC was planning.

Laurentian Bank's Christopher Chang thinks Rosemont will get permitted, but AZC shareholders will get increasingly impatient if there are more delays.

CIBC's Tom Meyer puts less weight in the news, saying further permitting delays are not surprising and are factored into the current share price.

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Comments (3)
  • Sumosabe
    , contributor
    Comments (4) | Send Message
     
    Me thinks Hudbay planted the Ocelot on the property under the cover of Darkness,,,
    23 May 2014, 03:58 PM Reply Like
  • 666isMONEY
    , contributor
    Comment (1) | Send Message
     
    i don't understand why HBM would want to buy AZC, i don't think they will ever get their permits
    23 May 2014, 03:58 PM Reply Like
  • King Rat
    , contributor
    Comments (1626) | Send Message
     
    Even if they don't get whatever permits any time soon, their financial situation wouldn't let them do much for quite a while anyway. This was probably a "buy while you can" decision with low commodity prices, low interest rates, and high liquidity. Raise commodity prices and interest rates in a year or two and reduce liquidity a bit and the same purchase would be much more expensive.
    24 May 2014, 02:26 AM Reply Like
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