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%.
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.