SomaBull • 14 Comments
Apr. 14, 2015, 6:57 PM
- The merger of equals between Alamos Gold (NYSE:AGI) and AuRico Gold (NYSE:AUQ) makes no sense for AGI shareholders, as the deal "effectively rescues" AUQ from its balance sheet troubles and provides AGI no premium in exchange, says TD Securities analyst Steven Green.
- The deal's enterprise value of $392 for AGI vs. AUQ's EV of a bit more than $1B means the merger undervalues AGI, Green says in downgrading AGI to Hold from Buy and cuts his stock price target to $9 from $11.
- The deal effectively puts both miners into M&A play, Green says, speculating that Agnico Eagle Mines (NYSE:AEM), Kinross Gold (NYSE:KGC) and Iamgold (NYSE:IAG) could be interested in AGI.
Apr. 13, 2015, 8:34 AM
- In a merger of equals, current owners of Canada's Alamos Gold (NYSE:AGI) and AuRico Gold (NYSE:AUQ) will each own roughly 50% of the new company - named Alamos Gold - whose value will be about $1.5B. The new company's board will have five directors from each firm.
- Also part of the deal, the new company will spin off some assets, including AuRico's Kemess project in B.C.
- A conference call is just underway.
Jun. 21, 2012, 11:15 AMAuRico Gold (AUQ -2.8%), fresh off its $1.3B purchase of Northgate Minerals, says it’s focused on its existing assets and will be “opportunistic&r... in considering further deals. CEO Rene Marion expects M&A activity in the gold mining industry will accelerate because gold stocks are trading more cheaply while new mines are becoming more expensive to build. | Jun. 21, 2012, 11:15 AM
Aug. 30, 2011, 4:18 PM
AuRico's (AUQ) purchase of Northgate Minerals at 14.7X EBITDA is the cheapest valuation for a gold miner worth more than $1B since 2004. Pricing of gold miners "has moved to an extreme, and one of the things that should actually correct this ... is M&A," says a fund manager.| Aug. 30, 2011, 4:18 PM
Aug. 29, 2011, 10:52 AM
Primero Mining (MNOCF.PK -16.6%) is the big loser in AuRico Gold's (AUQ -12.3%) buyout of Northgate Minerals (NXG +38%). Northgate orignially planned to buy Primero for C$370M, but terminated the agreement after accepting the buyout offer from AuRico. Primero, waiving its right to match the deal, will receive a C$25M termination fee.| Aug. 29, 2011, 10:52 AM
Aug. 29, 2011, 8:01 AM