The Capital Gold Takeover
Posted by commoditywatch on 15th March 2009
Capital Gold (US:CGLD; CA:CGC) is a junior mining company, producing about 60,000 ounces of gold per year from their El Chanate mine in Northern Mexico. They put their mine into production cheaply and quickly, encountering few of the problems that seem to afflict other companies. Their cash costs are about $300 per ounce. Their market cap is around US$130 million.
This week it was announced that Gammon Gold (CA:GAM, US:GRS) - a mid-tier producer in the nearby Mexico area, market cap about US$920 million - were making an all-share takeover bid that values Capital at a 20-30% premium. Is this a good deal for Capital’s shareholders? Capital’s COO John Brownlie discusses:
Standard Podcasts: Play Now | Play in Popup | Download | Embeddable Player | Hits (1436)Posted in Uncategorized | 3 Comments »
