Recent Expert Analysis Morning Coffee (10/16/12) "Argonaut Gold Inc. agreed to buy Prodigy Gold Inc. for $320.3M to add a project in Ontario. The acquisition and development of Prodigy's Magino gold project will help Argonaut meet its annual production target of 300–500 Koz gold. . .the terms of the transaction have been unanimously approved by both companies' boards of directors. . .Yesterday, Argonaut also announced record Q3/12 gold production of 31,074 oz and increased its 2012 production guidance to 101–103 Koz from 88–97 Koz."
Christos Doulis, Stonecap Securities (10/16/12) "On October 15, Argonaut Gold Inc. announced a proposed merger with Prodigy Gold Inc. . .the proposed acquisition of Prodigy provides Argonaut with the potential to reach ~500 Koz Au production. . .Argonaut continues to offer investors both current cash flow and excellent exposure to gold through its robust growth profile. . .and a stellar Q3/12 has set the stage for a stronger 2012 and beyond."
Rahul Paul, Canaccord Genuity (10/16/12) "We reiterate our Buy rating on Argonaut Gold Inc. following the announcement of: 1) record Q3/12 production results that were materially ahead of guidance and our estimates, 2) increased 2012 production guidance at both El Castillo and La Colorada and 3) a potentially accretive acquisition of Prodigy Gold Inc., which in our view should materially enhance the company's growth pipeline and facilitate rerating as an intermediate producer. Argonaut remains a Focus List pick."
Craig West, GMP Securities (10/15/12) "Argonaut Gold Inc. announced a friendly all-stock deal to acquire Prodigy Gold Inc. The deal values Prodigy at an enterprise value of CA$277M. . .the deal adds Prodigy's +6 Moz Magino project in Northern Ontario (near Wawa) to Argonaut's portfolio, a PEA-stage asset with potential to become the company's largest producing asset (175–250 Koz/year). . .we maintain our Buy."