Guess which ASX All Ordinaries gold stock just rocketed 35% on a takeover offer

Investors are bidding up the ASX All Ordinaries gold miner on the heels of a takeover offer.

| More on:
A man clenches his fists in excitement as gold coins fall from the sky.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The All Ordinaries Index (ASX: XAO) is having another day to forget on Monday, but that's certainly not the case for this ASX All Ordinaries gold stock.

In late morning trade on Monday, the All Ords is down 0.7%, while the ASX All Ordinaries gold producer is soaring 35.3%.

Any guesses?

If you said West African gold producer Tietto Minerals Ltd (ASX: TIE), give yourself a virtual gold star.

Investors have been sending the Tietto Minerals share price soaring after the miner reported on a takeover proposal.

What's on offer for the ASX All Ordinaries gold stock?

The Tietto Minerals share price is rocketing on news the miner received a conditional, non-binding indicative proposal from Zhaojin Capital to acquire 100% of the shares not already owned by Zhaojin.

Zhaojin Capital is a wholly owned subsidiary of Zhaojin Mining Industry. Zhaojin – currently Tietto's second-largest shareholder with a 7.02% holding – is offering 58 cents per share in cash by way of an off-market takeover offer.

That's 36.5% more than the 42.5 cents per share the ASX All Ordinaries gold stock closed for on Friday. Shares are currently trading for 57.5 cents apiece.

Management stressed there was no certainty the proposed takeover would result in a binding proposal that the board could recommend to shareholders. The board has appointed Barrenjoey and Corrs Chambers Westgarth as financial and legal advisers.

Tietto shareholders do not need to take any action at this stage.

Commenting on the takeover offer lobbed for the ASX All Ordinaries gold stock, Jiang Guipeng, chairman of Zhaojin Mining Industry, said:

We have presented to the Tietto board and all shareholders an attractive offer, in line with ASX premiums for control transactions, readily demonstrating our intent to acquire Tietto.

We have entered into productive engagement with the Tietto Minerals board and are looking forward to continuing discussions.  I commend our offer to them and Tietto shareholders.

What else is happening with Tietto Minerals?

This morning also saw the ASX All Ordinaries gold producer release its production update for the September quarter.

Over the three-month period, Tietto produced 33,750 ounces of gold, an increase of 116% from the prior quarter.

Commenting on the production figures, CEO Matt Wilcox said:

Production is still suffering from the lack of waste stripped during the preproduction period and the ongoing wet season. Our mining contractor has responded strongly and mobilised three additional production excavators and the wet weather is coming to a close.

We anticipate higher mining rates for the last quarter of 2023 and increased gold production.

The ASX All Ordinaries gold miner released an Updated Life of Mine Plan (LOMP) during the quarter for its Abujar gold mine. This estimates 170,000 ounces of annual gold production for nine years, running from 2024 to 2032.

Tietto estimates an all-in sustaining cost (AISC) of US$982 per ounce over that period. The company expects an average annual pre-tax US$137 million (AU$216 million). Post-tax, that should equate to US$108 million (AU$171 million).

The ASX All Ordinaries gold miner had cash and bullion holdings of AU$45 million (US$29 million) as at 30 September.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

A woman sits with a glass of milk in front of her as she puts a finger to the side of her face as though in thought while her eyes look to the side as though she is contemplating something.
Mergers & Acquisitions

Coles share price falls despite ACCC acquisition approval

Coles' $105 million dairy acquisition has been approved by the ACCC.

Read more »

Worker inspecting oil and gas pipeline.
Mergers & Acquisitions

Origin Energy share price tumbles on 'incomplete complex' revised takeover offer

Origin Energy shareholders will get to cast their votes on the contentious takeover proposal on Monday.

Read more »

Two CEOs shaking hands on a deal.
Mergers & Acquisitions

Wesfarmers share price rises amid latest acquisition news

The company has completed its latest acquisition.

Read more »

Close-up of a smiling man holding a jar containing nuggets of gold.

Guess which little-known explorer this ASX 200 gold stock is buying up

The junior ASX gold explorer has a promising pre-development project in Tanzania.

Read more »

A girl wearing a homemade rocket launches through the stars.
Small Cap Shares

Guess which ASX small-cap share is rocketing 24% after rejecting a takeover offer

This online beauty retailer is in the sights of a UK rival.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Energy Shares

Why you should vote your Origin shares in favour of its takeover

Brookfield believes investors should be accepting the offer that's on the table.

Read more »

A woman crosses her hands in front of her body in a defensive stance indicating a trading halt.
Energy Shares

Own Origin shares? Why you should vote against its takeover

AustralianSuper says investors should say no to a takeover.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Energy Shares

Origin Energy shares on watch amid takeover chaos

There has been a new twist in the Origin Energy takeover.

Read more »