1995 Couer buys Kensington from Echo Bay One of the company’s primary objectives was to increase Coeur’s income from gold. In an effort toward accomplishing this goal the company added the purchase of the Alaskan Kensington mine from Placid Oil Company. Echo Bay Mines, Ltd. of Canada bought into the operation, making it a 50/50 joint venture partner and mine operator. An estimated $197 million would be required before placing the property into commercial production, with the expectation of producing up to 200,000 ounces of gold per year. Coeur’s primary task was to drive a tunnel, intersect, and crosscut the major target–the Kensington vein.
According to company reports, a “5,200-foot tunnel, driven into a mountain 800 feet above sea level, was completed in December 1988, substantially ahead of schedule.” In 1995, Echo Bay Mines Ltd. won a temporary restraining order blocking Coeur d’Alene Mines from taking operating control of their Kensington joint venture. The Alaskan Superior Court ruled in favor of the Echo Bay injunction. Coeur charged “that Echo Bay’s resources were stretched in Alaska and that it had dragged its feet obtaining permits for Kensington,” according to Frank Haflich writing in American Metal Market. Coeur offered to buy out Echo Bay’s 50 percent, which was agreed upon in mid-1995.
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Well in 1995 gold was approx. $400 - $450 per oz. They bought it in 1995 (50%) of it from Echo Bay for $32.5 million USD. It had at the time.
The Kensington purchase puts the company in control of nearly 2 million ounces of gold reserves and elevates Coeur d’Alene Mines to a new level as a gold producer, said Ebersole.
Nearly 2 million ozs in 1995 they buy 50% for 32.5 million USD and buillion was $400- $450 per oz. then.
Can you see any metrics here we have roughly 1/2 of the reserves right? Gold buillion is 4 x the price of 1995 now!
My guesstimate is at 50% would be 4 x 32.5 million USD or $130 million USD
Well we have 1/2 the reserves so it still is $130 USD for a buyout at these gold prices plus they got a royalty from (Echo Bay did) from Coeur for the deal.
https://www.spokesman.com/stories/1995/may/12/cda-mines-boosts-stake-in-gold-mine/
Which would put the shareprice at $1.80, and after this drilling season is done who knows we might have increased the reserves by 500,000 ozs as the same with the metrics.
$2.70 ?????? per share. We know its been as high the shareprice as high as $4.00 on August 6th 2011.
And gold then was $1830? per oz.
Even on Sept 3rd 2011 the shareprice was $3.30 buillion was approx. $1650 then.