Alamos Gold (AGI -3.3%) agrees to acquire Esperanza Resources (ESPZF.PK) in a deal worth ~$69M....

Alamos Gold (AGI -3.3%) agrees to acquire Esperanza Resources (ESPZF.PK) in a deal worth ~$69M. Esperanza's gold project in Mexico holds 1.5M oz. of gold, and is expected to produce more than 100K oz./year at cash costs below $900/oz. upon completion. CEO John McCluskey says the deal has the potential to grow AGI's Mexican production by more than 50%.

Comments (3)
  • Uncle Pie
    , contributor
    Comments (4323) | Send Message
    Alamos is debt free and is therefore in a good position to cherry-pick among the decimated junior gold companies. It's not easy to find a profitable, debt free gold miner with a good record for growth.


    Long AGI (fingers crossed!)
    12 Jul 2013, 05:21 PM Reply Like
  • Russ Winter
    , contributor
    Comments (691) | Send Message
    This is incorrect. Esperanza has cash costs of $499, and a capex of $114 million.


    Esperanza also has 48 cents in cash, this is a great buyout for AGI.
    14 Jul 2013, 02:39 PM Reply Like
  • The Investment Doctor
    , contributor
    Comments (2765) | Send Message
    AGI bought Esperanza at 0.25X NPV of their project. Not a bad deal if they are able to straighten their permitting issues out.
    15 Jul 2013, 03:50 PM Reply Like
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