$GFI, $KGILF, $NMKTF, $SSRI
This week, South Africa’s Gold Fields (NYSE: GFI) the world’s 7th-largest bullion producer withdrew an joint offer with Silver Standard Resources (NASDAQ:SSRI) to buy Kirkland Lake Gold (OTCMKT:KGILF) after the Canadian miner rejected the bid.
Gold Fields (a Johannesburg-based company) said it is still interested in a transaction.
Kirkland (a Toronto-based company) on the other hand looks to to be moving ahead with plans to take over Australia’s Newmarket Gold (OTCMKT:NMKTF) in a transaction estimated at $764-M.
If Kirkland shareholders reject the proposed takeover of Newmarket, Gold Fields said Friday it is standing by to go back to the negotiations.
If approved, Kirkland is asking shareholders to do so, the deal will create what the firms said will be a low-cost producer with operations in Canada and Australia.
The company’s comments come after a some Kirkland shareholders said Wednesday that they wanted the company to resume talks with Gold Fields and Silver Standard, saying that the directors rejected their bid too quickly.
Those stakeholders have asked Kirkland to disclose more details of the joint offer so that they can compare it to the benefits an acquisition of Australia’s Newmarket would bring.
Kirkland Lake owns 5 former mines north-eastern Ontario, which produced 22-M oz of bullion at an average grade of 15.1 grams per tonne. Its high-grade production and reserves are located in a safe, mining-friendly jurisdiction, so the firm’s appeal has been strengthened by a scarcity of growth opportunities in the Gold sector.
Kirkland has more than $200-M of cash and equivalents on hand and in banks.
|OTCMKT:KGILF||5.79||18 November 2016||-0.05||5.72||5.89||5.53||71,600|
|HeffX-LTN Analysis for KGILF:||Overall||Short||Intermediate||Long|
|Bearish (-0.41)||Bearish (-0.29)||Bearish (-0.48)||Bearish (-0.46)|
|NYSE:GFI||3.24||18 November 2016||-0.04||3.29||3.32||3.2||6,749,700|
|HeffX-LTN Analysis for GFI:||Overall||Short||Intermediate||Long|
|Bearish (-0.35)||Bearish (-0.25)||Very Bearish (-0.67)||Neutral (-0.14)|
|OTCMKT:NMKTF||2.59||18 November 2016||0.05||2.54||2.6467||2.53||84,000|
|HeffX-LTN Analysis for NMKTF:||Overall||Short||Intermediate||Long|
|Bearish (-0.34)||Bearish (-0.39)||Neutral (-0.23)||Bearish (-0.42)|
Have a terrific weekend