De Grey Mining Limited

L1 Capital Long Short Fund has updated its investment thesis on De Grey Mining Limited, continuing to hold the position following a takeover offer from Northern Star Resources, which valued the company at a 37% premium to its last closing price. The fund sees this development as validating its long-held view that De Grey’s Hemi Gold project is a genuine tier one asset with substantial long-term value. Hemi is expected to produce over 500,000 ounces of gold annually for decades, positioning it as one of Australia’s major future gold producers. At the time of the offer, De Grey was nearing the end of permitting and preparing for construction of the $1.3 billion project in 2025. L1 Capital Long Short Fund notes that the bid from Northern Star aligns with its thesis that the market had not fully priced in the project’s potential, and that high-quality, large-scale gold discoveries like Hemi are rare and highly attractive to larger producers seeking growth. The fund believes the proposed transaction helps de-risk execution for De Grey shareholders while also delivering a compelling return outcome.

L1 Capital Long Short Fund continues to hold its position in De Grey Mining following a strong share price performance, driven by a 37% takeover offer from Northern Star. The fund remains confident in De Grey's Hemi Gold project, a tier-one gold discovery in the Pilbara, which is expected to produce over 500,000 ounces of gold annually for decades. This positions Hemi to become one of Australia’s largest gold producers. At the time of the offer, De Grey was nearing the final stages of permitting and preparing for construction of the $1.3 billion project in 2025. L1 Capital Long Short Fund’s investment thesis remains intact, as it believes Hemi offers significant upside beyond initial expectations, with its full value not yet reflected in the share price. Additionally, the scarcity of high-quality gold discoveries makes Hemi an attractive target for consolidation by larger producers, further validating the appeal of Northern Star’s offer. The transaction is seen as a positive development, de-risking future project execution for De Grey shareholders while providing a strong potential return.

L1 Capital Long Short Fund has updated its investment thesis on De Grey Mining Limited, continuing to hold the position following a strong share price performance driven by a 7.8% rise in the gold price and a pending takeover offer from Northern Star. The fund remains confident in De Grey’s Hemi Gold project, which it views as a genuine tier-one gold discovery with significant long-term upside. Hemi is expected to produce over 500,000 ounces of gold annually for decades, positioning it as one of Australia’s largest gold producers. L1 Capital Long Short Fund continues to hold because it believes the project’s full value is not yet reflected in the share price and that high-quality, large-scale gold discoveries like Hemi are increasingly scarce. As a result, these types of assets make attractive targets for consolidation by larger producers, as evidenced by Northern Star’s offer. The upcoming shareholder vote on the transaction, expected in April 2025, will be a key catalyst. With the ongoing rise in the gold price and the strategic nature of the Hemi project, L1 Capital Long Short Fund believes De Grey remains a compelling investment opportunity.