Nov. 12, 2015, 8:11 AM
- Barrick Gold (NYSE:ABX) agrees to sell its stakes in four non-core assets in Nevada in two transactions for a combined $720M, as it works to meet its stated $3B debt reduction target for 2015.
- ABX says it will sell its 50% interest in the Round Mountain mine and 100% of the Bald Mountain mine to Kinross Gold (NYSE:KGC) for $610M in cash.
- ABX also will sell its 70% interest in the Spring Valley project and its 100% interest in the Ruby Hill mine to subsidiaries of P-E firm Waterton for $110M.
- ABX -0.4%, KGC -1.2% premarket.
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, 7:00 AM
- AngloGold Ashanti (NYSE:AU) is entering second-round talks with Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC) for its Cripple Creek & Victor mine in the U.S., FT reports.
- Iamgold (NYSE:IAG) and Goldcorp (NYSE:GG) have also expressed interest for part or all of Cripple Creek.
- AngloGold says the sale is part of an "objective to simplify and improve the overall quality of its portfolio." It could also raise up to $1B and help the South African group cut its debt after a plan for a rights issue failed last year.
- AU -1.4% premarket
Apr. 2, 2014, 6:40 PM
- Yamana Gold (AUY) looks to have captured a huge prize in the Malartic gold mine via the acquisition of a 50% stake in Osisko Mining's (OSKFF) mining and exploration assets, but analysts are skeptical about AUY effectively paying a premium without gaining a controlling interest in the mine itself.
- Cowen analyst Adam Graff approves of the deal as it would help generate some tax savings for AUY in Canada, but he doubts the savings will offset the negative impact of the purchase premium.
- Investor Adrian Day says the implied price AUY would pay doesn't look grossly high, but the deal structure, where Yamana will not get control, is unusual; if hostile takeover bidder Goldcorp (GG) comes back with a better offer, he thinks many shareholders will find it easier to wrap their heads around than AUY's deal.
- Analysts had not expected another mining company to challenge Goldcorp, and some see a higher bid coming: "They have been chasing this asset for five years and there is no reason they would let it slip through their fingers."
- AUY shares -2.2% on the day, but most gold miners gained: OSKFF +7.7%, GG +2%, NGD +4.4%, ABX +4%, AGI +4%, NEM +3.3%, ANV +3.3%, NG +3%, GFI +2.7%, KGC +2.6%.
Jan. 24, 2013, 10:34 AM
Commodity prices are rebounding, but don’t expect megadeals in mining as a new crop of CEOs takes over, WSJ reports. At least 20 mining CEOs have stepped down in the past year, some related to unsuccessful acquisitions, and big deals are unlikely when many CEOs are new to their roles. "There will be M&A but it is likely to be very strategic, brownfield-related and very carefully thought through.”| Jan. 24, 2013, 10:34 AM | 2 Comments
Jul. 13, 2012, 11:12 AM
Kinross Gold (KGC +3.8%) rallies on a report from Veritas Investment that speculates Canadian peer Barrick Gold (ABX) will make an offer. Veritas argues Barrick is motivated to increase its scale at a time when major new gold discoveries are difficult to find, and that the recent drop in Kinross' shares will make the miner amenable to a deal. Stifel thinks Kinross' valuation and growth profile will appeal to Barrick, though Barrick's high debt load makes an all-cash offer unlikely.| Jul. 13, 2012, 11:12 AM | 2 Comments
May 29, 2012, 8:59 AM
Jan. 20, 2012, 8:33 AM
Kinross Gold (KGC) +1.5% premarket on speculation it may be a takeover target after saying earlier this week it will write down the value of its Tasiast mine in Mauritania, sending shares tumbling 20%. The company sells for $0.76 per dollar of net assets vs. the industry median of 2.5x, according to Bloomberg. Newmont Mining (NEM) is listed as a potentially interested suitor.| Jan. 20, 2012, 8:33 AM