The Mineral Deposits' board recommendation to shareholders to reject the Eramet bid comes with the claims the 50:50 mineral sands joint venture will likely generate free cash flow in the order of US$82-162 million in 2019.
That implies Eramet's bid price represents a free cashflow multiple of about 2.8-5.8-times … "a significant discount to market valuations in the sector".
Mineral Deposits' board claims to have received "public support from key shareholders" supporting its belief the bid is unfair.
Mineral Deposits said it was now "focused on pursuing all available options such that the value of the company's assets is fully recognised and realised" for shareholders.
"To that end, a data room has been established and Mineral Deposits is in disc...