June 3, 2024

By Nigam Arora & Dr. Natasha Arora

Signal(s) to enter, add, reduce, exit, hold or change.

NGLOY has started a restructuring after thwarting a buyout bid by BHP (BHP).

Here are the key points:

• Management believes that it can produce higher value by restructuring compared to selling the company.
• In The Arora Report analysis, if the restructuring is successful, the stock should go higher assuming investors continue to favor miners as a group.
  • If restructuring is not successful, the probability of another buyout bid is high.
• The prize here is NGLOY’s copper operations.  In the long term, demand for copper is expected to surge for the following reasons.