The list of companies in the running to acquire Lihir Gold (Nasdaq:LIHR) in Australia is shrinking, as mining giant Barrick Gold (NYSE:ABX) let it be known they're no longer interested in the gold miner.
It seems Newcrest Mining (ASX:NCM) is emerging as the sole company of interest, with a bid of $A9.7 billion.
There has been speculation in the past of Newmont Mining (NYSE:NEM) being a suitor of Lihir, but for now they've elected to make no comment on what they consider speculation.
Lihir had created an online marketplace for companies interested, looking to generate an enlarged interest in the company in order to increase the bidding price. So far that hasn't worked, although if there is any other interest, it will have to reveal itself sometime soon.
Showing posts with label Lihir Gold. Show all posts
Showing posts with label Lihir Gold. Show all posts
Tuesday, August 3, 2010
Monday, May 10, 2010
Newcrest Mining (ASE:NCM), Lihir Gold (Nasdaq:LIHR), Eldorado Gold (TSE:ELD) Flat
Newcrest Mining (ASE:NCM), Lihir Gold (Nasdaq:LIHR), Eldorado Gold (TSE:ELD) (NYSE:EGO) were largely flat today as investors lost a bit of their appetite for safety and took some money out after five-month highs last week.
Some of the risk appetite returned after the announcement the EU and IMF were going to provide a little under $1 trillion in loans to the struggling countries in the euro-zone.
Even so, after digesting the impact of that kind of money on the markets, gold prices for the day held their own, as the inevitability of inflation becoming a major problem after the trillions being poured into the economies around the world continues to weigh on investors, and there is nothing better than gold to combat that.
Consequently, gold prices today ended the session over $1,200 an ounce, showing the continuing support it has, and gold companies in general were somewhat level, although some made some major upward moves.
Some of the risk appetite returned after the announcement the EU and IMF were going to provide a little under $1 trillion in loans to the struggling countries in the euro-zone.
Even so, after digesting the impact of that kind of money on the markets, gold prices for the day held their own, as the inevitability of inflation becoming a major problem after the trillions being poured into the economies around the world continues to weigh on investors, and there is nothing better than gold to combat that.
Consequently, gold prices today ended the session over $1,200 an ounce, showing the continuing support it has, and gold companies in general were somewhat level, although some made some major upward moves.
Friday, May 7, 2010
Lihir Gold (TSE:LGG) Sells Ballarat Mine
Lihir Gold (TSE:LGG) (Nasdaq:LIHR) announced it has completed the sale of its Ballarat mine to Castlemaine Goldfields Ltd.
In March Lihir let it be known they were going to close the mine and reached a deal with Castlemaine to sell them the mine for $4.5 million in cash and another 2.5 percent royalty interest in the mine up to $50 million in future production.
Castlemaine has stated in the past they will explore the mine for a nine month period once they take possession. If there is progress, they will explore another nine months before beginning production.
In March Lihir let it be known they were going to close the mine and reached a deal with Castlemaine to sell them the mine for $4.5 million in cash and another 2.5 percent royalty interest in the mine up to $50 million in future production.
Castlemaine has stated in the past they will explore the mine for a nine month period once they take possession. If there is progress, they will explore another nine months before beginning production.
Tuesday, May 4, 2010
Newcrest (ASX:NCM) Increases Lihir (ASX:LGL) Bid to $8.8 Billion, Agrees to Deal
After increasing their bid for Lihir Gold (ASX:LGL) (TSE:LGG) to $8.8 billion, Newcrest Mining (ASX:NCM) agreed to buy the gold mining company, which would make them the fifth-largest gold producer in the world.
Terms of the offer are one share of Newcrest for every 8.43 Lihir shares, plus 22.5 cents. That also would be minus and dividend paid out in the first half. The original offer from Newcrest was one share for every 9.5 Lihir shares.
Shareholders in Lihir have a choice of increasing the amount of cash they receive or the number of shares.
Lihir has the option of negotiating with other companies through June 8.
Other mining companies that may be interested in Lihir are Newmont Mining (NYSE:NEM) (ASX:NEM) and Barrick Gold (TSE:ABX) (NYSE:ABX).
Terms of the offer are one share of Newcrest for every 8.43 Lihir shares, plus 22.5 cents. That also would be minus and dividend paid out in the first half. The original offer from Newcrest was one share for every 9.5 Lihir shares.
Shareholders in Lihir have a choice of increasing the amount of cash they receive or the number of shares.
Lihir has the option of negotiating with other companies through June 8.
Other mining companies that may be interested in Lihir are Newmont Mining (NYSE:NEM) (ASX:NEM) and Barrick Gold (TSE:ABX) (NYSE:ABX).
Tuesday, April 20, 2010
Lihir Gold (ASE:LGL) Quiet on Barrick Gold (TSE:ABX), Newmont Mining (NYSE: NEM) Access to Data Room
Lihir Gold Garnering Increased Interest from Major Gold Mining Companies
Lihir Gold (ASE:LGL) is quiet on the news it has opened up access to its data room to Barrick Gold (TSE:ABX) and Newmont Mining (NYSE: NEM).
Newcrest Mining (ASE:NCM), which has already been rejected for its takeover offer for Lihir, has asked that Lihir allows them access to the data room in order to obtain the relevant information needed if they want to make another bid for the company.
Lihir Gold (ASE:LGL) is quiet on the news it has opened up access to its data room to Barrick Gold (TSE:ABX) and Newmont Mining (NYSE: NEM).
Newcrest Mining (ASE:NCM), which has already been rejected for its takeover offer for Lihir, has asked that Lihir allows them access to the data room in order to obtain the relevant information needed if they want to make another bid for the company.
Saturday, April 17, 2010
Lihir Gold (ASE:LGL) Getting More Attention
News is out that Lihir Gold (ASE:LGL) has possibly prepared a 'data room' for those intersted in bidding on the company.
This could be a strategic move to pressure Newcrest Mining to increase its bid of $8.9 billion, which Lihir has rejected.
Other potential suitors of Lihi which have named include Goldcorp (TSE:G), Kinross Gold (TSE:K) and AngloGold Ashanti (NYSE:AU), although none of them have been confirmed as absolute.
This could be a strategic move to pressure Newcrest Mining to increase its bid of $8.9 billion, which Lihir has rejected.
Other potential suitors of Lihi which have named include Goldcorp (TSE:G), Kinross Gold (TSE:K) and AngloGold Ashanti (NYSE:AU), although none of them have been confirmed as absolute.
Thursday, April 15, 2010
Dirty Little Secret of Gold Companies
With the extraordinary run of gold prices, and what looks like a gold bull run which will go on for years, a number of "gold companies" have been communicating in a manner which doesn't reflect what the company actually is.
Does the company have a variety of precious metals they mine? Many do, yet they continue to market themselves as "gold companies," when in many cases gold isn't the primary metal that is mined by them.
Major mining companies which have fallen into this practice include Goldcorp (TSE:G) and Barrick Gold (TSE:ABX), which most investors consider primarily gold mining companies, when in fact they have numerous metals they extract from the ground.
Under normal conditions this would be a positive to have a variety of revenue sources, but in the age of the gold bull run, solely focusing on gold posititions them stronger in the mind of investors and the market.
Just keep in mind when evaluating gold mining companies, that most aren't solely gold miners, and research how many other metals they mine and the percentage of that in relationship to revenue and profits. You don't want to fall asleep at the wheel thinking you're strong in gold by investing in a company that may only be a gold mining company in name, but in fact is a metals mining company with gold as one of the various metals they generate revenue and profits from.
Who are some of the real gold mining companies in the world, as measured by almost completely mining gold? They would include Harmony Gold (NYSE:HMY), Kinross (NYSE:KGC), Lihir (Nasdaq:LIHR), Gold Fields (NYSE:GFI) and AngloGold Ashanti NYSE:AU), among others.
While these mine other metals, their primary source of revenue and profits is gold. All of this can change as they bring new projects online, but for now, they are the more pure plays in the gold mining industry.
Does the company have a variety of precious metals they mine? Many do, yet they continue to market themselves as "gold companies," when in many cases gold isn't the primary metal that is mined by them.
Major mining companies which have fallen into this practice include Goldcorp (TSE:G) and Barrick Gold (TSE:ABX), which most investors consider primarily gold mining companies, when in fact they have numerous metals they extract from the ground.
Under normal conditions this would be a positive to have a variety of revenue sources, but in the age of the gold bull run, solely focusing on gold posititions them stronger in the mind of investors and the market.
Just keep in mind when evaluating gold mining companies, that most aren't solely gold miners, and research how many other metals they mine and the percentage of that in relationship to revenue and profits. You don't want to fall asleep at the wheel thinking you're strong in gold by investing in a company that may only be a gold mining company in name, but in fact is a metals mining company with gold as one of the various metals they generate revenue and profits from.
Who are some of the real gold mining companies in the world, as measured by almost completely mining gold? They would include Harmony Gold (NYSE:HMY), Kinross (NYSE:KGC), Lihir (Nasdaq:LIHR), Gold Fields (NYSE:GFI) and AngloGold Ashanti NYSE:AU), among others.
While these mine other metals, their primary source of revenue and profits is gold. All of this can change as they bring new projects online, but for now, they are the more pure plays in the gold mining industry.
Monday, April 12, 2010
Newcrest (ASE:NCM) and Lihir (ASE:LGL) Deal
Newcrest Mining still interested in Lihir, but not at any cost
The assertion by Newcrest Mining (ASE:NCM) that its offer to acquire Lihir Gold Ltd (ASE:LGL) was "full and fair," along with the invitation to talk more with the company, seems to imply they still want to make a deal, but there isn't going to be any major new offers which would be far beyond the one they already made; although it seems to leave so wiggle room to increase it slightly.
What has been put on the table by Newcrest is to trade of share of Newcrest for nine shares of Lihir, plus an additional 22.5 cent a share. That would also be minus any dividend added by Lihir up till June 30, 2010.
With Newcrest in a strong position as far as its financials go, they don't have to make this deal in order to grow in the future, but it is a deal that should work well for them and Lihir. Newcrest has a market cap of around $24.5 billion with net debt of only about $200 million.
Newcrest said they'll continue to pursue the deal only if shareholders from both companies get value out of it, and the support of shareholders on both sides are there.
Lihir has rejected the offer by Newcrest, believing it undervalues the growth of the company and its current assets.
The assertion by Newcrest Mining (ASE:NCM) that its offer to acquire Lihir Gold Ltd (ASE:LGL) was "full and fair," along with the invitation to talk more with the company, seems to imply they still want to make a deal, but there isn't going to be any major new offers which would be far beyond the one they already made; although it seems to leave so wiggle room to increase it slightly.
What has been put on the table by Newcrest is to trade of share of Newcrest for nine shares of Lihir, plus an additional 22.5 cent a share. That would also be minus any dividend added by Lihir up till June 30, 2010.
With Newcrest in a strong position as far as its financials go, they don't have to make this deal in order to grow in the future, but it is a deal that should work well for them and Lihir. Newcrest has a market cap of around $24.5 billion with net debt of only about $200 million.
Newcrest said they'll continue to pursue the deal only if shareholders from both companies get value out of it, and the support of shareholders on both sides are there.
Lihir has rejected the offer by Newcrest, believing it undervalues the growth of the company and its current assets.
Thursday, April 1, 2010
Lihir Gold (ASE:LGL) Rejects Newcrest (ASE:NCM) Bid
Newcrest fails to acquire Lihir Gold
In the latest of many attempts to increase scale through acquisition among Australian gold companies, this one didn't pan out, as Lihir Gold (ASE:LGL) rejected a $8.45 billion offer from competitor Newcrest Mining (ASE:NCM).
Much of the attempts at consolidating Australian gold mining companies comes from the growing demand from China and India, which seem to have an insatiable appetite for gold and other metals at this time.
The offer by Newcrest was a hefty 28 percent premium over Wednesday's closing share price of Lihir, but Chairman Ross Garnaut said, "It did not include a sufficient premium for control."
Lihir produced 1.12 million ounces of gold in 2009 and is expected to be under that total in 2010, with projections from between 960,000 ounced to 1.06 million ounces.
In the latest of many attempts to increase scale through acquisition among Australian gold companies, this one didn't pan out, as Lihir Gold (ASE:LGL) rejected a $8.45 billion offer from competitor Newcrest Mining (ASE:NCM).
Much of the attempts at consolidating Australian gold mining companies comes from the growing demand from China and India, which seem to have an insatiable appetite for gold and other metals at this time.
The offer by Newcrest was a hefty 28 percent premium over Wednesday's closing share price of Lihir, but Chairman Ross Garnaut said, "It did not include a sufficient premium for control."
Lihir produced 1.12 million ounces of gold in 2009 and is expected to be under that total in 2010, with projections from between 960,000 ounced to 1.06 million ounces.
Monday, March 22, 2010
Golden Star Resources (AMEX:GSS) and Dividends
Golden Star Resources
A growing number of gold and silver mining companies have started to offer dividends to their shareholders as precious metal producers continue to grow strong profits. Golden Star Resources (AMEX:GSS) is rumored among those companies which may be one of the next mining companies to offer a dividend to their shareholders.
Others already offering dividends include Harmony Gold Mining, Kingsgate Consolidated, Alamos Gold and Lihir Gold, among others.
It wouldn't be surprising to see Golden Star Resources include a dividend for their shareholders, as the company has drawn a lot of interest recently, and that would be a nice addition to attract even more investors.
A growing number of gold and silver mining companies have started to offer dividends to their shareholders as precious metal producers continue to grow strong profits. Golden Star Resources (AMEX:GSS) is rumored among those companies which may be one of the next mining companies to offer a dividend to their shareholders.
Others already offering dividends include Harmony Gold Mining, Kingsgate Consolidated, Alamos Gold and Lihir Gold, among others.
It wouldn't be surprising to see Golden Star Resources include a dividend for their shareholders, as the company has drawn a lot of interest recently, and that would be a nice addition to attract even more investors.
Saturday, March 6, 2010
Lihir Gold (NASDAQ:LIHR) Sells Ballarat Project
Lihir Gold Sells Ballarat Project
Lihir Gold (ASE:LGL) has sold its Ballarat project to Castlemaine Goldfields (ASE:CGT) for A$4.5 million.
Based in Victoria, Australia, the Ballarat Gold Mine sale will be subject to meeting certain conditions; a major part being the issuing of stock to raise A$20 million.
Terms of the deal, along with the sales price, includes Castlemaine keeping a 2.5 percent royalty of any production in the future, with a cap of A$50 million on that part of the agreement.
In the near term Lihir said it will focus on exploration rather than operations at this time.
Lihir Gold Sells Ballarat Project
Lihir Gold (ASE:LGL) has sold its Ballarat project to Castlemaine Goldfields (ASE:CGT) for A$4.5 million.
Based in Victoria, Australia, the Ballarat Gold Mine sale will be subject to meeting certain conditions; a major part being the issuing of stock to raise A$20 million.
Terms of the deal, along with the sales price, includes Castlemaine keeping a 2.5 percent royalty of any production in the future, with a cap of A$50 million on that part of the agreement.
In the near term Lihir said it will focus on exploration rather than operations at this time.
Lihir Gold Sells Ballarat Project
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