The Investment Doctor • Mon, Sep. 22
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Update: Australian Court Approves Papillon Resources Buyout SchemeThe Investment Doctor • Mon, Sep. 22
- The Federal Court of Australia has approved the scheme of arrangement.
- I anticipated this, as the court has no ground to deny the approval.
- The investment thesis becomes invalid, as Papillon Resources will be acquired and delisted.
- Papillon announces B2Gold’s shareholders have ratified the buyout deal.
- This ratification isn’t a surprise as it was very widely expected.
- As Papillon will be bought out and delisted, the investment thesis is obviously no longer valid.
There are no Transcripts on PAPQF.
Tue, Jun. 3, 8:04 AM
- B2Gold (BTG) agrees to acquire Papillon Resources (PAPQF) for A$1.72/share, valuing the company at ~$570M.
- BTG says the combination will result in a company with a growth profile beyond its three operating mines, which collectively produced 366K oz. of gold in 2013 at a cash cost of $681/oz.; BTG expects total production to rise to ~550K oz. by FY 2015 as the low cost Otjikoto mine in Namibia is scheduled to commence gold production in late 2014.
Aug. 21, 2013, 8:21 AM
- Takeovers and asset purchases by producers based in China and Hong Kong rose to a record $2.24B this year amid the steep decline in gold prices and mine values, according to data compiled by Bloomberg.
- The busy Chinese activity comes as shareholders in Western-based miners warn executives to chill their M&A activity. Chinese miners - often with lower production costs - are less constrained and have continually perky domestic consumption to satisfy.
- Next possible targets are Papillon Resources (PAPQF.OB), Iamgold (IAG), Amara Mining, and Perseus Mining (PMNXF.PK), according to Aussie gold analyst David Brennan. China's largest producer Zijin Mining has previously said it has its eye on three Australian mines Barrick (ABX) has for sale.
- China's appetite for gold is virtually insatiable, says Jon Price of Phoenix Gold (PGLD.PK). "They have a large bank account with which to work, and a lot of U.S. dollars that they perhaps would rather see turned into physical assets."
- Gold mining ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.
PAPQF vs. ETF Alternatives
Papillon Resources Limited (Papillon or the Company) is an emerging West African gold developer focused on aggressively fast-tracking the exploration, appraisal and development of its flagship Fekola Project (Fekola or the Project), located in south western Mali adjacent to the border with... More
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