Acquisition Speculation on the Rise as Yamana Gold Acquires Extorre for $414 Million
12 Luglio 2012 - 2:20PM
Marketwired
Junior Miners have been hit hard in 2012 as gold prices have
struggled to gain any upwards momentum. The Market Vectors Junior
Gold Miners ETF (GDXJ) has fallen over 25 percent year-to-date. The
industry in recent week has been a hotbed of acquisition
speculation after Yamana Gold announced it had acquired Extorre
Gold Mines Ltd. for $414 million, or $4.26 a share. Five Star
Equities examines the outlook for companies in the Gold Industry
and provides equity research on Brigus Gold Corp. (NYSE: BRD) and
Rubicon Minerals Corp. (NYSE: RBY)(TSX: RMX).
Access to the full company reports can be found at:
www.FiveStarEquities.com/BRD www.FiveStarEquities.com/RBY
Junior miners with quality mining projects have been attractive
targets for major gold companies in 2012 as many juniors have seen
share prices plummet due to poor market conditions. While Yamana
Gold did pay a 68 percent premium for Extorre, shares of the
company were trading as high as $15 last July.
"Part of it was market conditions, and part of it is the
coincidence that we completed our due diligence and came to the
conclusion that there was value in the asset and value in the
purchase," Yamana chief executive Peter Marrone said in an
interview.
Five Star Equities releases regular market updates on the Gold
Industry so investors can stay ahead of the crowd and make the best
investment decisions to maximize their returns. Take a few minutes
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Brigus Gold is a high quality emerging mid-tier gold producer
with projects in Ontario and Saskatchewan. With approximately 1.86
million ounces of gold in reserves, increased cash flow, and
projects ready for development, Brigus Gold is well positioned for
growth. During the second quarter of 2012, the company produced
18,254 ounces of gold at an average grade of 3.30 grams per ton and
a projected cash cost of between $800 and $825 per ounce.
Rubicon's focus is in highly prospective gold producing areas of
North America. It controls over 65,000 acres of prime exploration
ground in the prolific Red Lake gold camp of Ontario, Canada, which
hosts Goldcorp's high-grade, world class Red Lake Mine. Shares of
the company have fallen over 20 percent year-to-date.
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