As gold mining company Tietto Minerals nears full production rates at its Abujar gold mine, in Côte d’Ivoire, it is also focusing on organic growth opportunities, while Hong Kong-based Zhaojin Capital’s unsolicited takeover offer for the company awaits further action.

Zhaojin in November last year announced a proposed off-market takeover offer of A$0.58 a share for all shares in Tietto not already owned by it. The offer has since been extended several times.

It continues to remain highly conditional, including on approvals by Chinese and Côte d’Ivoire authorities.

Tietto’s directors maintain that shareholders should reject the takeover offer and that it is opportunistic. To date, Zhaojin does not appear to have received any acceptances of its offer, Tietto states.

Since the announcement of the offer, Tietto has continued to enhance its operational and financial performance, including growing gold production to more than 13 000 oz a month in December and January, respectively.

The company’s monthly mining rates are now consistently outpacing milling rates, with monthly mining rates having increased to 508 000 t of ore in December last year, which allows Tietto to stockpile lower-grade ore.

Tietto has about eight weeks of mill feed in stockpiles, which provides flexibility and risk buffering ahead of the next wet season.

Moreover, the gold price has reached $2 100/oz since the offer was announced, which is materially higher than the gold prices assumed in Tietto’s independent expert report, which indicated a valuation range for Tietto of A$0.79 to A$0.92 apiece, which is between 37% and 60% higher than Zhaojin’s offer price.

Tietto held cash of A$82-million as at December 31, which is an 84% increase on the cash of A$45-million held in September last year, which shows good cash generation.

Tietto has expanded its mining fleet with three additional excavators and other mobile mining equipment.

Looking ahead, the company plans to explore on its 1 114 km² prospective land package, as well as grow Abujar’s mine life beyond its current nine years through the conversion of resources into reserves.