Canaccord Downgrades Augusta Resource To Hold, Maintains C$3.50 PT


Hudbay Minerals (HBM) and Augusta Resources Corp. (AZC) today entered into a definitive agreement for the acquisition of AZC by HBM. Augusta shareholders will now receive 0.315 of a Hudbay share plus a 0.17 of a warrant to acquire a Hudbay share. Today’s press release notes that based on the June 20 closing price of HBM, the revised consideration implies an offer price of C$3.56 per AZC share – C$3.24 for the share portion and C$0.32 for the warrant portion.

As a result, Canaccord analyst Gary Lampard downgraded the rating on Augusta Resource to Hold from Speculative Buy, but maintained his price target of C$3.50, which is based on the HBM implied offer price of C$3.56.

“We recommend that AZC shareholders tender their shares to HBM’s improved offer. We expect the acquisition to be complete by late July / early August”, Lampard wrote.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Gary Lampard currently has a one-year average return of 17% and a 100% success rate. He is ranked #1536 out of 3123 analysts.

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