Overview of Zhaojin Capital's takeover bid for Tietto Minerals Limited

Tietto Minerals Limited (ASX:TIE) has received the first supplementary bidder's statement from Zhaojin Capital (Hong Kong) Limited, expressing disappointment with Tietto's board and valuation of Tietto's shares. The takeover bid, under Chapter 6 of the Corporations Act 2001, aims to acquire all fully paid ordinary shares in Tietto Minerals Limited.

Zhaojin Capital's observations and concerns regarding Tietto's performance and valuation

Zhaojin Capital has expressed disappointment with Tietto's board for not recommending acceptance of the offer, citing Tietto's consistent failure to meet production guidance as a key reason for the decline in share price. They have raised concerns about the omission of detailed assumptions underlying the Tietto Financial Model, the sensitivity of the Independent Expert's valuation to gold price forecasts, and the inappropriate comparisons made in the Independent Expert's valuation cross-checks. Zhaojin Capital also highlighted the significant risks and uncertainties associated with Tietto's future prospects, emphasizing the benefits of their all-cash offer in the current uncertain environment.

Outlook for Tietto Minerals Limited and Zhaojin Capital's takeover bid

Tietto Minerals Limited faces challenges in meeting production guidance and uncertainties regarding its future mine plan, as highlighted by Zhaojin Capital. The company's valuation and the Independent Expert's assessment have been called into question, with concerns raised about the lack of detailed assumptions and the sensitivity of the valuation to gold price forecasts. Tietto's board remains optimistic about the company's future, but Zhaojin Capital's all-cash offer provides an alternative for shareholders to consider in light of the risks and uncertainties. The takeover offer is scheduled to close on 12 January 2024, and Tietto shareholders are urged to carefully evaluate the offer and its implications.