Today has been very interesting in the world of gold mining. To wet your whistle, an exploration and aquisition company is now going into the gold production business. Another gold mining company announced that they would acquire 100% of the outstanding common shares of a smaller exploration company without making a hostile take-over bid, and the coup de gras, even though this mining company rose 0.8% to $39.10, the company along with its partner may have some trouble with the locals. The local government threatened to withhold their mining license! Read it on 24K Chuk Kam!
Great Basin Gold Limited usually engages in the acquisition, exploration, and development of precious metal deposits primarily gold and silver deposits. Now it has moved from just an exploration company to a production company. It owns interests in the Hollister gold project and the Esmeralda property in Nevada, and the Burnstone gold project in South Africa. L.A. Little at Real Money is moving into the bullish realm as GBG’s production comes on line. It is well supported in price as a result and any weakness that stems this news needs to be used to accumulate shares.
Kinross Gold . The board of directors of Underworld unanimously recommends the offer to its shareholders. For each Common Share of Underworld, Kinross will offer 0.141 of a Kinross common share, plus $0.01 in cash. The offer represents an implied offer price of ~$2.62 per Common Share. The transaction values the fully-diluted share capital of Underworld at approximately $139.2 M. Underworld's key asset is the White Gold project, in the Tintina gold belt south of Dawson City, Yukon Territory. The project has roughly 1.5 million ounces of resources. Kinross stock is currently trading down 0.8% at $17.90.
Barrick Gold rose 0.8% to $39.10, as the company's CEO Aaron Regent maintains his optimism about Barrick's ability to reach an agreement to develop the huge $3 billion Reko Diq gold-copper project in Pakistan. Barrick and Chilean copper mining company Antofagasta together own the majority of the project, while the local government owns the remaining stake. Many have been worried that the project might be in jeopardy after the local government threatened to withhold a mining license that the companies would need to move the project forward with the project.
Goldcorp reported Q4 (Dec) earnings of $0.25 per share, excluding non-recurring items, in-line with the First Call consensus of $0.25; revenues rose 27.8% year/year to $778.3M vs the $732.4 M consensus. The Company reported gold production of 601,300 ounces at a total cash cost of $289 per ounce for the quarter ended December 31, 2009.
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