Shares of Newmont Mining (NYSE:NEM) jumped Thursday on news it will raise its annual gold production 35 percent by 2017.
The company estimates it will mine from 5.1 million and 5.3 ounces of gold in 2011.
The $2.4 billion acquisition of Fronteer Gold (AMEX:FRG) will help the company reach that goal.
Newmont said it will spend about $7 billion to boost production to the levels its pursuing. It isn't clear if that means more acquisitions or expanding existing mines.
Expansion of current projects can be less costly, but the lower quality of ore at some mines can actually increase costs.
If gold prices remain at or above current levels of over $1,400 an ounce, Newmont said they'll generate a return of 20 percent.
Concerning dividends, Newmont added it will pay an additional 20 cents a share for each $100 an ounce increase in the average realized gold price.
Newmont closed Thursday at $58.29, gaining $1.84, or 3.26 percent.
Showing posts with label Fronteer Gold. Show all posts
Showing posts with label Fronteer Gold. Show all posts
Friday, April 8, 2011
Tuesday, February 22, 2011
Goldcorp (GG), Kinross (KGC), Newmont Mining (NEM) and the Gold Industry Consolidation
Unable to grow organically at a pace to meed gold market demand, big gold miners like Goldcorp (NYSE:GG), Kinross (NYSE:KGC) and Newmont Mining (NYSE:NEM) have been leading the way in acquisitions, and we should see a lot more of them going forward.
As gold prices rise, the spate of gold company acquisitions is bound to increase. 2010 was tumultuous with three major multi-billion gold acquisitions: the $ 10 billion acquisition of Australian Lihir Gold by fellow Newcrest Mining (NCMGY.PK), the $7.1 billion combination of Canada's giant Kinross and fellow Red Back, and the $3.5 billion Canadian giant Goldcorp buy-out of Australian Andean Resources.
More recently, there is the announced $2.3 billion acquisition of Canada's Fronteer Gold by American giant Newmont Mining (NEM).
Smaller deals include the $830 million Franco-Nevada (FNV) pending purchase of Gold Wheaton, the $700 million American Thompson Creek Metals (TCM) takeover of Canadian Terrane Metals and the previous $140 million Kinross takeover of Underworld Resources.
The larger gold miners are just not able to succeed at their own organic gold exploration programs and need to acquire the smaller more capable exploration companies to replenish their mining reserves, as detailed here in a previous posting. This sets the stage up nicely for the smaller companies that are geologically competent and are busy drilling and proving up their resources and reserves.
Source: Seeking Alpha
As gold prices rise, the spate of gold company acquisitions is bound to increase. 2010 was tumultuous with three major multi-billion gold acquisitions: the $ 10 billion acquisition of Australian Lihir Gold by fellow Newcrest Mining (NCMGY.PK), the $7.1 billion combination of Canada's giant Kinross and fellow Red Back, and the $3.5 billion Canadian giant Goldcorp buy-out of Australian Andean Resources.
More recently, there is the announced $2.3 billion acquisition of Canada's Fronteer Gold by American giant Newmont Mining (NEM).
Smaller deals include the $830 million Franco-Nevada (FNV) pending purchase of Gold Wheaton, the $700 million American Thompson Creek Metals (TCM) takeover of Canadian Terrane Metals and the previous $140 million Kinross takeover of Underworld Resources.
The larger gold miners are just not able to succeed at their own organic gold exploration programs and need to acquire the smaller more capable exploration companies to replenish their mining reserves, as detailed here in a previous posting. This sets the stage up nicely for the smaller companies that are geologically competent and are busy drilling and proving up their resources and reserves.
Source: Seeking Alpha
Thursday, February 3, 2011
Newmont Mining (NYSE:NEM) Taking Over Fronteer Gold (Amex:FRG)
Newmont Mining (NYSE:NEM) announced it'll be acquiring Fronteer Gold (Amex:FRG) for $2.33 Billion.
The deal was driven primarily by potential gold in the Long Canyon project in in Nevada and its close proximity to Newmont projects in Nevada, which will help them cut costs. Fronteer also has the Northumberland and Sandman projects in Nevada as well.
Combined projected gold for the three assets is 4.2 million ounces.
Fronteer Gold President and CEO, Mark O'Dea, said: "This transaction delivers an immediate and attractive premium to our shareholders. It not only recognizes the current value of our key Nevada gold projects, but rewards shareholders for their future growth."
The Long Canyon project is located about 100 miles from Newmont's infrastructure in Nevada.
Richard O’Brien, Newmont’s chief executive officer, added, “The acquisition of Frontier Gold will contribute significantly to our anticipated growth profile in North America,”
The deal values Fronteer at a 37 percent premium over its Wednesday close.
Newmont was trading at $56.51, gaining $0.86, or 1.55 percent, as of 12:09 PM EST. Fronteer Gold was trading at $14.42, up $4.02, or 38.65 percent.
The deal was driven primarily by potential gold in the Long Canyon project in in Nevada and its close proximity to Newmont projects in Nevada, which will help them cut costs. Fronteer also has the Northumberland and Sandman projects in Nevada as well.
Combined projected gold for the three assets is 4.2 million ounces.
Fronteer Gold President and CEO, Mark O'Dea, said: "This transaction delivers an immediate and attractive premium to our shareholders. It not only recognizes the current value of our key Nevada gold projects, but rewards shareholders for their future growth."
The Long Canyon project is located about 100 miles from Newmont's infrastructure in Nevada.
Richard O’Brien, Newmont’s chief executive officer, added, “The acquisition of Frontier Gold will contribute significantly to our anticipated growth profile in North America,”
The deal values Fronteer at a 37 percent premium over its Wednesday close.
Newmont was trading at $56.51, gaining $0.86, or 1.55 percent, as of 12:09 PM EST. Fronteer Gold was trading at $14.42, up $4.02, or 38.65 percent.
Monday, January 3, 2011
Eldorado Gold (NYSE:EGO), Fronteer Gold (AMEX:FRG), Newmont Mining (NYSE:NEM), IAMGOLD (NYSE:IAG) in 2010
In this grouping of gold miners we're looking at, all of them ended 2010 on a positive note, along with spot gold prices and gold futures, including Eldorado Gold (NYSE:EGO), Fronteer Gold (AMEX:FRG), Newmont Mining (NYSE:NEM) and IAMGOLD (NYSE:IAG).
Spot gold and gold futures ended the year with a roar, as spot gold soared to over $1,420 an ounce.
Newmont Mining ended the year at $61.43, gaining $0.35 on December 31, up 0.57 percent. The company had a 52-week trading range of $42.80 to $65.50. They ended the year with a market cap of $30.29 billion.
IAMGOLD closed the year out at $17.80, losing $0.06 on the last trading day, down 0.34 percent. The trading range for 2010 was from $13.00 to $20.25. They ended the year with a market cap of $6.64 billion.
Fronteer Gold finished off the year at $11.73, rising $0.18 on Friday, a gain of 1.56 percent. The 2010 trading range for them was $3.76 to $12.09. They closed off the year with a market cap of $1.77 billion.
Eldorado Gold ended 2010 at $18.57, up $0.03 on the final trading day of the year, increasing 0.16 percent. Their range for the year was $11.39 to $19.48. Their market cap heading into 2011 is $10.17 billion.
Spot gold and gold futures ended the year with a roar, as spot gold soared to over $1,420 an ounce.
Newmont Mining ended the year at $61.43, gaining $0.35 on December 31, up 0.57 percent. The company had a 52-week trading range of $42.80 to $65.50. They ended the year with a market cap of $30.29 billion.
IAMGOLD closed the year out at $17.80, losing $0.06 on the last trading day, down 0.34 percent. The trading range for 2010 was from $13.00 to $20.25. They ended the year with a market cap of $6.64 billion.
Fronteer Gold finished off the year at $11.73, rising $0.18 on Friday, a gain of 1.56 percent. The 2010 trading range for them was $3.76 to $12.09. They closed off the year with a market cap of $1.77 billion.
Eldorado Gold ended 2010 at $18.57, up $0.03 on the final trading day of the year, increasing 0.16 percent. Their range for the year was $11.39 to $19.48. Their market cap heading into 2011 is $10.17 billion.
Friday, November 5, 2010
Alamos Gold (TSE:AGI), IAMGOLD (NYSE:IAG), Fronteer Gold (AMEX:FRG) Shares Skyrocket on Record Gold Prices
Alamos Gold (TSE:AGI), IAMGOLD (NYSE:IAG), Fronteer Gold (AMEX:FRG) moved up strongly in share price as the gold prices soared to record levels in response to the new round of inflating the money supply, or quantitative easing, as the Fed likes to call it now.
Spot gold prices soared to over $1,390 as the trading session approached its closing moments, up by $42.50.
The gold miners, and other miners as well, soared in response to the actions of the Federal Reserve, and should find support as the money is released into the economy over the next several months.
Spot gold prices soared to over $1,390 as the trading session approached its closing moments, up by $42.50.
The gold miners, and other miners as well, soared in response to the actions of the Federal Reserve, and should find support as the money is released into the economy over the next several months.
Friday, September 3, 2010
Teck (NYSE:TCK), Fronteer (Amex:FRG) Launch 'TV Tower Gold Project'
Teck Resources' (NYSE:TCK) Turkish subsidiary, TMST, which is 60 percent joint venture partner and project operator in with Fronteer Gold (Amex:FRG), has begun a 5,000 meter drill program on the TV Tower Gold Project in Turkey.
The property entails 65 kilometers2 and can be accessed by road.
Fronteer Gold said there is a strong possibility that multiple gold deposits are located within the project.
Highlights from rock-saw channel sampling from four different target areas include:
1.1 grams per ton gold over 113 metres
0.7 g/t gold over 63 metres
0.3 g/t gold over 26.5 metres
0.4 g/t gold over 20 metres with individual grab samples as high as 50.0 g/t gold
Fronteer added in a press release:
"A CDN$1.3 million program, funded 60%/40% by TMST and Fronteer Gold, is planned for 2010 with a focus on initiating Phase 1 drilling on two high-sulphidation gold targets. The program will include an additional 30 line kilometres of IP/Resistivity surveys, and 5,000 meters of drilling with two diamond-core rigs."
The property entails 65 kilometers2 and can be accessed by road.
Fronteer Gold said there is a strong possibility that multiple gold deposits are located within the project.
Highlights from rock-saw channel sampling from four different target areas include:
1.1 grams per ton gold over 113 metres
0.7 g/t gold over 63 metres
0.3 g/t gold over 26.5 metres
0.4 g/t gold over 20 metres with individual grab samples as high as 50.0 g/t gold
Fronteer added in a press release:
"A CDN$1.3 million program, funded 60%/40% by TMST and Fronteer Gold, is planned for 2010 with a focus on initiating Phase 1 drilling on two high-sulphidation gold targets. The program will include an additional 30 line kilometres of IP/Resistivity surveys, and 5,000 meters of drilling with two diamond-core rigs."
Tuesday, August 3, 2010
Eldorado (NYSE:EGO), Fronteer (AMEX:FRG) Up on Gold Prices Rising
Gold and other metal prices have continue to rise in general, with gold enjoying its fifth straight positive trading day, although prices are creeping up, rather than skyrocketing. Eldorado Gold Corporation (NYSE:EGO) (TSE:ELD) and Fronteer Gold (AMEX:FRG) rose over 3 percent as investor confidence and bargain hunters return to the yellow metal.
Fronteer Gold Inc. ended the day at $6.07, an increase of $0.23, or 3.94 percent.
Eldorado Gold Corporation was just behind them when measured by percentages, closing the session at $16.49, a gain of $0.56, or 3.52 percent.
If gold prices can continue to increase incrementally, or even find support and remain pretty much level, once gold prices start to surge again, it could easily soar to record levels, and a number of gold miners will follow in their wake.
Fronteer Gold Inc. ended the day at $6.07, an increase of $0.23, or 3.94 percent.
Eldorado Gold Corporation was just behind them when measured by percentages, closing the session at $16.49, a gain of $0.56, or 3.52 percent.
If gold prices can continue to increase incrementally, or even find support and remain pretty much level, once gold prices start to surge again, it could easily soar to record levels, and a number of gold miners will follow in their wake.
Monday, May 24, 2010
Fronteer Gold (AMEX:FRG) Ready to Break Out?
Fronteer Gold (AMEX:FRG) has made a nice move this year, with a 52-week range of 2.85 - 6.37, and as of today standing at $5.57 a share, a gain of 26 cents, or 4.90 percent. That was as of 1:05 p.m. EST.
A number of analysts and investors think Fronteer has a lot of upside to it, and that could be the case.
Fronteer reported a new resource estimate for its Long Canyon Gold project last week:
-- A Measured and Indicated (M&I) resource of 672,000 ounces at an averagegrade of 1.71 g/t gold (12,240,000 tons); and,-- An additional Inferred resource of 552,000 ounces at an average grade of1.65 g/t gold (10,394,000 tons).
A couple of good things Fronteer has going for them is their projects are primarily located in stable regions, including Turkey, and in the U.S. - California and Nevada.
They're also in a strong cash position, where they won't have to incur any more debt, with cash and Short-term deposits coming to $147. million, as of December 2009.
According to Fronteer, this should provide the majority of, if not all, cash they need for operations, exploration and acquisitions for a least a year, and probably longer.
A number of analysts and investors think Fronteer has a lot of upside to it, and that could be the case.
Fronteer reported a new resource estimate for its Long Canyon Gold project last week:
-- A Measured and Indicated (M&I) resource of 672,000 ounces at an averagegrade of 1.71 g/t gold (12,240,000 tons); and,-- An additional Inferred resource of 552,000 ounces at an average grade of1.65 g/t gold (10,394,000 tons).
A couple of good things Fronteer has going for them is their projects are primarily located in stable regions, including Turkey, and in the U.S. - California and Nevada.
They're also in a strong cash position, where they won't have to incur any more debt, with cash and Short-term deposits coming to $147. million, as of December 2009.
According to Fronteer, this should provide the majority of, if not all, cash they need for operations, exploration and acquisitions for a least a year, and probably longer.
Thursday, May 13, 2010
Fronteer Gold (TSE:FRG) Profits Up on Gold Project Sales
Fronteer Gold (TSE:FRG) reported a profit for the first quarter, largely on the back of selling two of their gold projects based in Turkey to Alamos Gold Inc (TSE:AGI).
Earnings came in at C$9.8 million, or 8 Canadian cents a share for the quarter as a result, beating analysts' expectations, who had been looking for a loss of 1 cent. Last year in the same quarter the company posted a loss of C$5.5 million, or 6 Canadian cents.
The sale of the two gold projects in Turkey brought the company C$18.4 million. Fronteer had a 40 percent interest in the two mines.
Over the last three months Fronteer has made a nice upward move of about 30 percent.
Earnings came in at C$9.8 million, or 8 Canadian cents a share for the quarter as a result, beating analysts' expectations, who had been looking for a loss of 1 cent. Last year in the same quarter the company posted a loss of C$5.5 million, or 6 Canadian cents.
The sale of the two gold projects in Turkey brought the company C$18.4 million. Fronteer had a 40 percent interest in the two mines.
Over the last three months Fronteer has made a nice upward move of about 30 percent.
Subscribe to:
Posts (Atom)