Let’s take a closer look at what I mean below:Given the $14.77/oz price tag for Alio Gold’s ounces, we now have a confirmed downtrend in place for the price paid per ounce, with two consecutive deals coming in miles below the prior average. Meanwhile, Florida Canyon is home to 1.74 million ounces of gold as well, at an average gold grade of 0.40 grams per tonne gold. Basically, the Alio Gold and SEMAFO deals have wiped out all the progress made in 2019 for gold producers in takeover scenarios, as we were seeing hefty premiums and respectable amounts paid for names like As we can see in the above chart comparing the gold price (gold line) to the 3-period average of price paid per ounce for gold producers (blue bars), the price paid per ounce has been halved in the same period gold has risen 10%. On a weighted average basis for companywide ounces, Alio Gold is adding 3.25 million ounces of gold to Argonaut’s inventory, at an average gold grade of 1.29 grams per tonne.
Super Micro Computer, Inc. (SMCI) CEO Charles Liang on Q4 2020 Results – Earnings Call Transcript The most recent acquisition, announced Monday morning, is the ). Try one of these ... while dollar and gold prices rise.
Fast-forward four months, and we’ve got the average down to $123.76/oz and the 3-period moving average of the price paid per ounce at $107.41/oz. However, while the deal is good for Argonaut, it’s not great for valuations in the sector, as it tells us that suitors are snapping up assets for fire-sale prices and getting away with it.
[ August 12, 2020 ] Let’s take a closer look at what I mean below:Given the $14.77/oz price tag for Alio Gold’s ounces, we now have a confirmed downtrend in place for the price paid per ounce, with two consecutive deals coming in miles below the prior average. Not only are we seeing smaller premiums paid by suitors for deals on average, but we’ve seen the price paid per ounce for gold producers drop off a cliff. This works out to $15.48/oz for Alio Gold’s ounces, with half of these assets at the Florida Canyon mine in Nevada and the other half at the Ana Paula Project in Mexico. Brazil’s privatization czar resigns amid economic slowdown By Reuters It’s been a hectic month for M&A thus far in the gold sector, with a near-record three deals in just over one month. [ August 12, 2020 ] Done at a mere $14.77/oz, As those trading the gold sector may be familiar with, we’ve seen a flurry of M&A in the past five weeks. This was a new all-time high for this indicator, and equivalent to roughly 15% of the spot price of gold ($1,500/oz).
New Zealand Dollar Plunges As RBNZ Boosts Large-Scale Asset Purchase Program There is certainly some truth to this, and I would argue that the past two gold producer acquisitions have been of inferior quality. The deal isn’t much of a relief to Alio Gold shareholders, as it was done at the market, meaning that those accumulating the stock hoping for an eventual pay day won’t be getting their day in the sun.
[ August 12, 2020 ] It’s been a hectic month for M&A thus far in the gold sector, with a near-record three deals in just over one month. This is because Alio Gold’s all-in sustaining costs are well above the median of past takeovers of $908/oz.
Argonaut Gold Inc Ord stock and Industrial Metals & Minerals market discussion, news, and analysis from Canada's largest community of active investors. Perma-Fix Environmental Services, Inc. (PESI) CEO Mark Duff on Q2 2020 Results – Earnings Call Transcript
Silver futures surge and gold nears record in flight to havens. However, things aren’t always as they should be, and the reality is that we’re seeing producers bought up for $125.00/oz or less on average. The deal isn’t much of a relief to Alio Gold shareholders, as it was done at the market, meaning that those accumulating the stock hoping for an eventual pay day won’t be getting their day in the sun. I am not receiving compensation for it (other than from Seeking Alpha).
The company operates in the mining industry and its principal product is gold.
[ August 12, 2020 ] On a weighted average basis for companywide ounces, Alio Gold is adding 3.25 million ounces of gold to Argonaut’s inventory, at an average gold grade of 1.29 grams per tonne.
Basically, the Alio Gold and SEMAFO deals have wiped out all the progress made in 2019 for gold producers in takeover scenarios, as we were seeing hefty premiums and respectable amounts paid for names like As we can see in the above chart comparing the gold price (gold line) to the 3-period average of price paid per ounce for gold producers (blue bars), the price paid per ounce has been halved in the same period gold has risen 10%. Cookies are used to offer you a better browsing experience and to analyze our traffic. Kiwi in Focus as RBNZ Decision Looms I am not receiving compensation for it (other than from Seeking Alpha). As we headed into 2020, the average price paid per ounce for gold producers was sitting at $151.31/oz, with the 3-period moving average at $213.68/oz. First, we had Excellon Resources () last week, and the most recent deal to finish the month is Argonaut Gold taking over Alio Gold. Based on this ratio, Alio Gold is being valued at US$48 million as a gold producer, despite having a global gold resource of 3.2 million ounces.
Based on this ratio, Alio Gold is being valued at US$48 million as a gold producer, despite having a global gold resource of 3.2 million ounces.
Currently, we are sitting at $107.41/oz, a figure closer to 7% of the spot gold price, a massive step in the wrong direction. Done at a mere $14.77/oz, As those trading the gold sector may be familiar with, we’ve seen a flurry of M&A in the past five weeks. Meanwhile, the resource size is also inferior, with the average takeover having a median resource of 5 plus million ounces compared to Alio Gold’s 3.25 million ounces. Argonaut shares drop 6.87%. It’s been a hectic month for M&A thus far in the gold sector, with a near-record three deals in just over one month.
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