Archive | Gold and Silver

[Newmont/Goldcorp] These assets could be up for grabs after mega gold mining merger – by Rajeshni Naidu-Ghelani (Bloomberg News/Business Network News – January 18, 2019)

 

https://www.bnnbloomberg.ca/

Recent M&A activity in the mining sector like Newmont Mining Corp.’s move this week to buy Goldcorp Inc. to form the world’s largest gold miner, and rival Barrick Gold Corp.’s acquisition of Randgold Resources Ltd., have shaken up the lacklustre industry.

As part of the deals, the mining giants have said they will be selling assets — sparking speculation on which mines could be up for grabs, and who would be interested in buying them.

Newmont and Goldcorp. said on Monday the merged company will sell up to US$1.5 billion in assets over the next two years, while Barrick has pledged to focus on cash-generating assets. Continue Reading →

My Take on Snow Lake: New exploration of previous mine site yields promising results – by Marc Jackson (Thompson Citizen – January 18, 2019)

https://www.thompsoncitizen.net/

Mining is the industry that drives the economy in the Snow Lake area … it has for over 100 years. All of the mines the industry is based on have been in the ground since the Earth was formed; however, it was only when technology allowed mine finders the ability to locate orebodies that they were able to exploit them. As technology continually advances, many of those occurrences mined or explored in decades past are now getting a second look.

This was the case with the Lalor Mine (Chisel Lake Basin) and the Snow Lake Mine (New Britannia and Nor-Acme), but it is also playing a part in the resurrection of exploration on several lithium properties on the east side of Wekusko Lake (Thompson Brother Cluster and the Sherritt Gordon Cluster), as well as the mine that originally brought pioneers to the area early in the 20th century – Herb Lake’s Rex/Laguna.

Back in the 1930s and ’40s, Herb Lake, Manitoba was a prosperous mining town. It hummed with activity and even though it couldn’t be accessed by anything other than boat and a winter road, it was home to between 600 and 700 people. Continue Reading →

Is Newmont Goldcorp good for North? – by Shane Lasley (Mining News – North of 60 – January 18, 2019)

https://www.miningnewsnorth.com/

he proposed combination of Newmont Mining Corp. and Goldcorp Inc. has raised questions about the future of the companies’ gold assets in the Yukon and investments in other junior mining companies across Canada’s North.

Two of the gold projects in the proposed Newmont Goldcorp pipeline are found in the Yukon – Plateau, a large property being explored by Newmont, and Coffee, a project that is nearing the mine development stage.

Knowing that the combined gold miner plans to shed some of its assets, it is currently unclear whether these projects will fit into the larger company’s pipeline or be put up for sale as part of the effort to slim down. Continue Reading →

Dinner and a golden proposal: How Goldcorp and Newmont came together – by Niall McGee and Rachelle Younglai (Globe and Mail – January 18, 2019)

https://www.theglobeandmail.com/

When Goldcorp Inc. executives sat down with their counterparts at Newmont Mining Corp. at an upscale restaurant in downtown Vancouver, it was supposed to be a casual get-together. The mid-December dinner had been on their schedules for some time, and was planned simply to build the rapport between the two senior gold mining companies.

Instead, in one of the restaurant’s private dining rooms, Newmont chair Noreen Doyle and chief executive Gary Goldberg told Goldcorp attendees it wanted to acquire the company. The reaction from Goldcorp chair Ian Telfer and CEO David Garofalo was shock.

While Vancouver’s Goldcorp had been exploring the idea of working with Denver-based Newmont for a few years, the idea of a takeover had never come up. However, with Goldcorp’s share price severely beaten down after many strategic blunders, it was vulnerable. In fact, Goldcorp had recently been talking with Australia’s Newcrest Mining Ltd. about a possible takeover of Goldcorp. Continue Reading →

Security expert warns Canadian man’s death is ‘shot fired’ to mining companies in West Africa – by Janice Dickson (Globe and Mail – January 18, 2018)

https://www.theglobeandmail.com/

A former senior member of Canada’s spy agency says the killing of Canadian citizen Kirk Woodman is a “shot fired” across the bow of other mining companies operating in West Africa – a region that could see exploration grind to a halt in the wake of his death.

Mr. Woodman was abducted on Jan. 15 by a dozen gunmen on a mining site owned by Vancouver-based Progress Minerals near the border with Niger, an area that the government says is under growing threat from armed jihadis.

A spokesman for Burkina Faso’s security ministry confirmed on Thursday that Mr. Woodman had been found dead. Andrew Ellis, former assistant director of operations for CSIS, said Mr. Woodman’s death is a wake-up call “for all the other mineral extraction companies in Canada working in the region.” Continue Reading →

Foreigners are taking control of Barrick and Goldcorp – but the miners made this mess – by Tim Kiladze (Globe and Mail – January 18, 2019)

https://www.theglobeandmail.com/

David Garofalo seemed to have everything going for him. A polished executive with a strong résumé in mining, he was hired to run Goldcorp Inc. in 2015, giving him control of what looked like a darling in a moribund sector.

Unlike many of its peers, Goldcorp came out of the commodity crash with a favourable view from investors. It had avoided mega-acquisitions. The balance sheet looked good.

Three years later, Mr. Garofalo has lost the confidence of shareholders. Goldcorp’s stock fell by more than half, hit by falling production and rising costs, prompting U.S. gold giant Newmont Mining Corp. to step forward this week with a deal to buy the company for US$10-billion. It’s not certain if Mr. Garofalo will have a job at the merged company. What is clear is that another big Canadian-based mining company is falling into foreign hands. Continue Reading →

Mystery solved: Why Newmont is offering a mere 2 cents in cash as part of its bid for Goldcorp – by David Milstead (Globe and Mail – January 17 2019)

https://www.theglobeandmail.com/

It is the mystery of the two cents. When Newmont Mining Corp. said on Monday it will buy Goldcorp Inc. for about $10-billion, swapping its stock for Goldcorp’s, it said it would add 2 US cents per share in cash to the transaction. The tiny little sweetener will cost Newmont just US$17-million.

Why even bother? Robert Willens, a long-time U.S. securities analyst who specializes in matters of taxation, seems to have the answer. Newmont is creating a sizable but little-understood tax benefit for Goldcorp Inc.’s U.S. shareholders that effectively makes its offer more valuable than it appears.

The companies have not addressed the matter. Newmont declined to comment for this story and Goldcorp did not respond to a request. But Mr. Willens told his clients on Tuesday that the structure of the deal makes it taxable for Goldcorp’s U.S. and Canadian shareholders. Usually, companies do everything to avoid that. Continue Reading →

Northern Superior moves forward with projects in Ontario and Quebec – by Staff (Mining.com – January 17, 2019)

http://www.mining.com/

Northern Superior Resources (TSX-V: SUP) issued a press release this week stating that it is ready to move forward with both its TPK gold-silver-copper project located in northwestern Ontario and its Lac Surprise gold project located in Quebec.

The Sudbury-based company said it expects to start drilling at the Ti-pa-haa-kaa-ning property, known for its initials TPK, by mid-February, following the completion of an option/joint venture agreement with Yamana Gold (TSX: YRI) (NYSE: AUY) at the tail end of 2018.

The massive Ontario mine site, which occupies 442,669 hectares and sits 15 kilometres west of the Ring of Fire, is considered to host the largest gold grain-in-till dispersal aprons in North America, with drill core intersections yielding up to 25.9g/t gold over 13.5m. Continue Reading →

Gold Bull McEwen Sticks With His $5,000 Call as Pot Stocks Peak – by Danielle Bochove (January 17, 2019)

https://www.bloomberg.com/

Gold mining veteran Rob McEwen is nothing if not optimistic. The founder of Goldcorp Inc. is sticking with his bold prediction that the precious metal will soar almost fourfold to $5,000 an ounce, bolstered by a weaker dollar and waning demand for trendy assets like pot stocks.

“Once people get over buying cryptos and biotech and cannabis stocks they’re going to start looking at gold again,” the chief executive officer of McEwen Mining Inc. said in an interview Thursday in Toronto with Bloomberg Television.

Asked about his price target, McEwen said: “I’ve always liked $2,000 and beyond that $5,000.” McEwen has been wrong before. In 2017, he predicted a “tsunami” of liquidity seeking safe haven would push gold above $5,000 an ounce. Continue Reading →

Three gold stocks analysts think will outperform as lustre returns to overlooked sector – by Victor Ferreira (Financial Post – January 17, 2019)

https://business.financialpost.com/

The Canadian gold industry’s second mega-deal in a little over four months has some investors taking another look at the sector, which has been lagging for years.

Earlier this week, Goldcorp Inc. announced that it would be merging with Colorado-based Newmont Mining Corp. in a US$10 billion deal that came close on the heels of Barrick Gold Corp.’s September merger with Randgold Resources Ltd.

While some may be on the lookout for the next takeover target, there are other reasons investors may be tempted jump back in, according to analysts at BMO Capital Markets, CIBC and National Bank of Canada. Here are three stocks in the sector those analysts believe could have upside going forward.

Alamos Gold Inc. Continue Reading →

Eyes on Newcrest as gold dealmaking heats up – by Nichola Saminather (Reuters U.S. – January 14, 2019)

https://www.reuters.com/

TORONTO (Reuters) – Two recent large M&A deals in the gold sector have prompted speculation that Newcrest Mining (NCM.AX), Kinross Gold Corp (K.TO) and B2Gold Corp (BTO.TO) may be among the next gold companies to combine with a rival, bankers and analysts said.

On Monday, Newmont Mining (NEM.N) announced a $10 billion takeover of Goldcorp Inc (G.TO), close on the heels of Barrick Gold’s (ABX.TO) purchase of Randgold Resources.

Deal-making had largely been dormant in the gold sector in recent years, as companies focused on cutting costs amid investor criticism of inadequate management of capital. But the need to bolster shrinking gold reserves to boost growth and take advantage of rising gold prices are now providing the impetus for consolidation. Continue Reading →

Gold Veteran Says Bigger May Not Be Better as M&A Blitz Hits – by David Stringer and Ranjeetha Pakiam (Bloomberg News – January 15, 2019)

https://www.bloomberg.com/

The $15 billion flurry of deal-making that will super-size the gold industry’s leading producers is no guarantee of better performance, according to an Australian miner who’s been outpacing larger competitors.

Rising gold prices and a hunt to boost additional reserves of the precious metal have spurred Newmont Mining Corp. and Barrick Gold Corp. to acquire rival companies and add more operations. Their moves have stoked expectations that other producers will now also look to combine.

“The thesis being offered is that bigger is better, and historically in the gold sector that hasn’t proven to be value creating for shareholders,” Jake Klein, executive chairman of Sydney-based Evolution Mining Ltd., said by phone on Tuesday. “This time it may be different, but certainly the past has not demonstrated that.” Continue Reading →

Newmont CEO defends Goldcorp deal amid speculation rival bidders could emerge – Gabriel Friedman (Financial Post – January 16, 2019)

https://business.financialpost.com/

One analyst downgraded Newmont from outperformer to neutral ‘until the company provides additional clarity on its strategic plans’

Gary Goldberg, chief executive of Colorado-based Newmont Mining Corp., started off Tuesday morning feeling upbeat.

One day after announcing his company’s US$10 billion bid for Vancouver-based Goldcorp Inc., his company’s stock was trading down, again, falling three per cent at one stage on Tuesday, after falling 8.89 per cent on Monday; and now Goldcorp was also trading down more than three per cent.

Reaction to the deal looked decidedly mixed. One analyst was raising questions about the rationale for the deal and another was suggesting the price was too low and Goldcorp could attract other bidders; and yet Goldberg insisted none of it was surprising or unnerving in the slightest. Continue Reading →

Newmont likely to sell a number of Goldcorp’s Canadian mines – by Niall McGee (Globe and Mail – January 16, 2019)

https://www.theglobeandmail.com/

Newmont Mining Corp.’s acquisition of Goldcorp Inc. will likely result in the sale of a number of the latter’s Canadian mines as the combined company focuses on its best-performing and lowest-cost operations.

On Monday, the Denver-based gold major announced it had reached a friendly deal to acquire Vancouver-based Goldcorp for US$10-billion in a mostly share transaction that will see Newmont’s mine portfolio jump to 20 properties across four continents.

It was the second major deal in the Canadian gold sector in the past few months, with Toronto’s Barrick Gold Corp. recently closing its US$6-billion acquisition of Randgold Resources Ltd. Continue Reading →

Monster Gold-Mining Deals Pile Pressure on Those Left Behind – by Thomas Biesheuvel and Danielle Bochove (Bloomberg News – January 15, 2019)

https://www.bloomberg.com/

Mark Bristow’s tenure as boss of the world’s biggest gold miner might have been short-lived, but his message for smaller rivals just got even more pointed.

“Holy camoly, I missed out on a great opportunity!” is how Bristow described anyone not involved in Barrick Gold Corp.’s purchase of Randgold Resources Ltd. in September. With Newmont Mining Corp. poised to become the No. 1 producer through a $10 billion takeover of Goldcorp Inc. announced Monday, the pressure on those left behind will be even greater.

The two mega deals promise to transform the industry that many investors have shunned due to floundering bullion prices and poor decision making by producers. The newly combined companies are also expected to put several unloved assets up for sale, leaving lots of room for maneuvering by those that missed out on the dealmaking so far. Continue Reading →