Gold Production in Southern Ecuador
6 million oz Gold & 27 million oz Silver
Message: Financial Post says Iamgold in acquisition mood
This might be interesting for Dynasty Metals and Mining shareholders
IAMGOLD has assets in Ecuador already .... from their website
Here's the article regarding Iamgold being interested in acquistions in the Americas. Dynasty might be a good fit into their company already having interests in Ecuador if Iamgold is not concerned about additional country risk exposure ? DMM meets and exceeds all the requirements that Iamgold mg't have set as prerequisites for asset purchase.
Iamgold seeks acquisitions in Americas
Oct. 15, 2011 | Last Updated: Oct. 15, 2011 4:07 AM ET
TORONTO .
Iamgold Corp., a Toronto-based gold and niobium producer, is looking for acquisitions and may spend as much as $1-billion to add gold assets.
The miner will focus its search in the Americas, and will also consider deals in West Africa, spokesman Bob Tait said in an interview at Iamgold's Toronto headquarters.
"Ideally we'd like to find something in areas where we already have an established presence," Mr. Tait said. Iamgold operates mines in Canada, Suriname and Burkina Faso, and owns 41% of two gold mines in Mali that are operated by AngloGold Ashanti Ltd.
Iamgold is targeting transactions in a range of $300-million to $500-million, but could spend as much as $1-billion on an attractive asset, Mr. Tait said.
Iamgold completed the sale of its 19% stakes in the Tarkwa and Damang mines in Ghana to majority partner Gold Fields Ltd. in June. The company wants to use the proceeds for acquisitions, Mr. Tait said. Iamgold reported a net gain of $402.6-million on the sale. The company also sold its Mupane mine in Botswana for $34.2-million in August.
Chief executive Steve Letwin, who joined Iamgold in November after leaving Enbridge Inc., is looking for assets with a minimum annual production of 150,000 ounces and reserves of at least two million ounces of gold, Mr. Tait said.
The company will consider acquiring development projects or producing assets, but would prefer something it can build itself, he said.
"If you look at the criteria they have set, there are so many to pick and choose that I'm sure the Iamgold corporate-development guys have a lot of work on their plate," said Paul Burchell, a Toronto-based analyst at Dundee Securities Corp. He rates Iamgold shares a buy.
African assets will account for around 58% of the company's operating cash flow this year, mainly from Iamgold's Essakane mine in Burkina Faso, which started commercial production in August 2010, Mr. Tait said.
The split will shift to 40% from Africa, 36% North America and 24% South America in 2014, after the company starts production at its Westwood project in Quebec.
Iamgold acquired Essakane after agreeing to buy Orezone Resources Inc. for $139-million in shares in December 2008.
Iamgold will also consider raising its dividend payments again. The company announced dividend increases in December 2010 and June this year.
The miner plans to sell 10% to 20% in its Niobec niobium mine in Quebec to help fund a planned expansion. Niobec could be spun out and listed in Toronto or Hong Kong in the future, Mr. Tait said. Niobium is used to strengthen steel in applications such as pipelines and jet engines.
Iamgold has hired Goldman Sachs Group Inc. to help "explore options" for the sale of the Niobec stake, said Laura Young, a company spokeswoman.
Iamgold's Toronto Stock Exchange-traded shares have risen 17% this year. They closed Friday at $20.95, up 32ยข.http://www.nationalpost.com/ne.....story.htmlhttp://www.iamgold.com/English.....fault.aspx
Loading...
Loading...
New Message
Please
login
to post a reply