Tue, Apr. 14, 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.
Mon, Apr. 13, 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.
- Surce: Press Release
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%.
Jul. 12, 2013, 11:27 AMAlamos 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%. | 3 Comments
Mar. 19, 2013, 6:28 PMAlamos Gold (AGI) drops its hostile takeover offer for Aurizon Mines (AZK), saying its conditions have not been met due to a $27M break fee that would be payable to Hecla Mining (HL), which emerged with a white knight offer for AZK. HL's offer still requires approvals from two-thirds of votes cast at a shareholder meeting. | Comment!
Mar. 12, 2013, 8:21 AMAlamos Gold (AGI) goes on the offensive in the takeover battle for Aurizon Mines (AZK), asking a securities regulator to reject both a proposed $27M break fee and poison pill it believes are highly irregular. AGI CEO John McCluskey says if he loses the hearing at the British Columbia Securities Commission, the company probably would drop its hostile bid and walk away. | Comment!
Mar. 11, 2013, 9:07 AMAurizon Mines (AZK) adopts a shareholder rights plan, seeking to prevent Alamos Gold (AGI) from using its voting power to defeat a better takeover offer from Hecla Mining (HL) and saying its plan will ensure all shareholders are treated equally. AZK says recent comments by AGI suggest it is attempting to gather enough shares to block the HL bid. | Comment!
Mar. 5, 2013, 8:00 AMAurizon Mines (AZK) urges shareholders to reject Alamos Gold's (AGI) takeover bid and approve the deal announced yesterday to sell itself to Hecla Mining (HL). AGI says it will not boost its offer, set to expire today, but argues that a combination with AZK would create a much more valuable company than the proposed deal with HL. | Comment!
Mar. 4, 2013, 8:34 AMU.S. silver miner Hecla Mining (HL) agrees to acquire Canadian gold miner Aurizon Mines (AZK) for ~C$796M, nearly a month after AZK rejected an offer from Alamos Gold (AGI). The offer price of C$4.75/share represents a 9% premium to Aurizon's Friday closing of C$4.35. HL -9%, AZK +6.2% premarket. | 1 Comment
Jan. 23, 2013, 9:28 AMAurizon Mines (AZK) says its board considers Alamos Gold's (AGI) $780M takeover offer "financially inadequate and opportunistic" and recommends shareholders reject the hostile bid. The offer is "timed to take advantage of a transition year for Aurizon that we believe will be the foundation of long-term value creation for our shareholders," AZK says. | 2 Comments
Jan. 15, 2013, 10:43 AMAlamos Gold (AGI) is a low-cost, open-pit gold miner in Mexico, while Aurizon Mines (AZK +2.1%) is a higher-cost, underground gold miner in Quebec. With no obvious strategic fit, analysts were caught off-guard by AGI's hostile bid for AZK; a Raymond James analyst is concerned about operating issues at AZK’s Casa Berardi mine, while another at the same firm sees the mine as fairly valued. | Comment!
Jan. 15, 2013, 9:49 AM
Jan. 14, 2013, 8:11 AMAlamos Gold (AGI) offers ~C$780M in cash and stock to acquire Aurizon Mines (AZK) to gain access to AZK's only operating gold mine, Casa Berardi, in northern Quebec. The bid values AZK at $4.65/share, a 36% premium over Friday's Toronto closing price. Alamos also applies to list its common shares on the NYSE under the AGI ticker. AZK +27.4% premarket. | Comment!
AGI vs. ETF Alternatives
Alamos Gold Inc is engaged in the exploration, mine development and extraction of precious metals. It owns and operates the Mulatos mine and holds the mineral rights to the Salamandra group of concessions in the State of Sonora, Mexico.
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