{"id":699644,"date":"2010-03-24T09:45:00","date_gmt":"2010-03-24T13:45:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:412321"},"modified":"2010-03-24T09:45:00","modified_gmt":"2010-03-24T13:45:00","slug":"quadra-takes-dilution-for-long-term-growth","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/699644","title":{"rendered":"Quadra takes dilution for long-term growth"},"content":{"rendered":"<p>Analysts are praising  the <a href=\"http:\/\/www.financialpost.com\/story.html?id=2718766\" >proposed merger<\/a> of equals between <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=QUA&amp;id=9608964\" >Quadra Mining Ltd<\/a>. and <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=FNX&amp;id=32809\" >FNX Mining Co. Inc<\/a>.<\/p>\n<p>The consensus view is that Quadra is sacrificing short-term dilution in order to achieve diversification and economies of scale. Fraser Phillips, an analyst at RBC Capital Markets, wrote in a note that his forecasts for earnings and cash flow per share fall by an average of 10% to 12% from 2011 through 2013 as a result of the transaction. But he considers that an acceptable trade-off given the long-term benefits.<\/p>\n<p>&quot;The merged company will provide investors with leverage to copper in a mid-size North American mining company, providing an alternative to First Quantum and Inmet,&quot; he wrote.<\/p>\n<p>Tom Meyer, an analyst at Raymond James, wrote that the new Quadra FNX should be a serious player in the M&amp;A space. He noted that the shortage of good management teams, along with the insane costs to finance projects, creates opportunities for acquisitions. Until now, the only mid-sized copper company in a good position to capitalize on them was First Quantum, he wrote.<\/p>\n<p>UBS Securities analyst Onno Rutten highlighted the relatively high near-term operational risk of the company. But he still maintained a &quot;buy&quot; rating and $21.00-a-share target on Quadra, noting that it has attractive growth prospects with the Levack Footwall in the near term and Sierra Gorda in the long term.<\/p>\n<p><a href=\"mailto:pkoven@nationalpost.com\">Peter Koven<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=412321\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts are praising the proposed merger of equals between Quadra Mining Ltd. and FNX Mining Co. Inc. The consensus view is that Quadra is sacrificing short-term dilution in order to achieve diversification and economies of scale. Fraser Phillips, an analyst at RBC Capital Markets, wrote in a note that his forecasts for earnings and cash [&hellip;]<\/p>\n","protected":false},"author":2572,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-699644","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2W0A","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/699644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/2572"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=699644"}],"version-history":[{"count":0,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/699644\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=699644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=699644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=699644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}