Nestle SA (NESN:VX; NSRGY:OTC) announced that Philipp Navratil has been appointed as CEO of the company following the dismissal of Laurent Freixe for an undisclosed romantic relationship with a direct subordinate. Navratil, who joined the company in 2001, had most recently been in charge of the Nespresso unit and was on the executive board.
Freixe had been CEO for exactly one year before his firing.
Freixe was allegedly reported by his mistress, another senior executive at Nestlé; “hell” and “fury” come to mind.
That woman has also left the company. The affair appears to have no impact on the stock, which remains a good value, with a better-than-4% 4% dividend yield, the highest for at least this century.
We will hold, awaiting any strategic moves by the new CEO.
Orogen Continues To Bring in Partners
Orogen Royalties Inc. (OGN:TSXV; OGNNF:OTC) announced another generative alliance, this time with South32, focusing on base metals targets in western North America. South32 is to fund the alliance while Orogen be the operator, presenting targets to a joint committee.
South32 has rights to earn into any discoveries found, on which Orogen would retain a royalty.
This follows an announcement of the sale of another Orogen property, a copper-gold porphyry in British Columbia, cheekily renamed the Camelot project (reminiscent of Anglo’s Arthur Project). Prospect Ridge must make a modest payment to Orogen, which retains a royalty. Orogen share price has jumped in the last two weeks to a spin-out high, boosted by renewed interest in the junior royalty sector.
We would look to buy on a pullback.
Acquisition Adds to Pan American’s Silver
Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) has closed it acquisition of MAG Silver, whose interest in the Juanicipio mine (operated by Fresnillo) adds about 5 million ounces of silver production per year, an increase of a little over 20%.
This boosts silver’s share of Pan American’s revenue to about 22%. Last year, Juanicipio was the world’s lowest-cost primary silver mine, and is thought to have considerable exploration potential.
Though this is an attractive acquisition, and Pan America has considerable upside with Escobal in Guatemala, the stock is short-term overbought, and we are holding.
Overall, we are waiting for a pause in the market, before adding to positions.
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