Ridley Corporation Ltd T.RIC

Canadian Gold Junior Takeover Targets

[PetroLoonie1]

RIC in the list..................

https://www.smallcappower.com/posts/article-canadian-gold-junior-23-01-2015

Could 2015 be a comeback year for gold stocks? The precious metal’s price is up more than 9% year to date (recently breaking US$1300) and oil costs are way down from a year ago, all of which should equate tomore cash and higher stock prices for gold miners looking to add ounces via an acquisition or two.

Goldcorp’s (TSX: G) C$526 milliontakeover of Probe Mines Limited (TSXV: PRB), announced on January 19, 2015, may have sent markets a message that Canada is the desired destination for gold project development. After all, less than a year ago Goldcorp was willing to pay more than C$3 billion for Quebec’s Osisko Mining before losing out to Yamana Gold and Agnico Eagle Mines. By spending just $526 million on Probe, one could imagine that Goldcorp may have other acquisitions in mind, perhaps a producing one. As well, other miners could be set to snap up one of the remaining good gold projects for itself. The following companies have greater appeal now that Probe Mines is off the market:

Argonaut Gold Inc. (TSX: AR): The majority of Argonaut’s assets are in Mexico, with its producing El Castillo Mine in Durango and La Colorada Mine in Sonora, although it does have a development stage Magino project in northern Ontario. As of September 30, 2014, the company had $45 million in cash and $5 million in debt. Argonaut has a Measure and Indicated gold resource of approximately 11.5 million ounces and for 2015 it expects to produce 135,000 to 145,000 gold equivalent ounces at total cash costs of $700 to $750 per gold ounce sold. Seeing that Goldcorp also has operations in both Mexico and Ontario, Argonaut would appear to have been a more appealing acquisition target given its market cap of just $435 million. Shares of Argonaut Gold have surged 54% so far in 2015 to its current price of $2.82.

Pretium Resources Inc. (TSX: PVG):Although its Brucejack gold project in northern British Columbia isn’t expected to go into production until 2017, the 6.9 million ounces of probable reserves in its Valley of the Kings area grading 15.7 g/t is difficult to ignore. A feasibility study done in June estimates average annual gold production of 504,000 ounces during the mine’s first 8 years at all-in sustaining cash costs of justUS$448 per ounce using a US$1100 gold price assumption. Silver Standard Resources Inc. (TSX: SSO)has a large stake (about 17 million shares) in Pretium as does China’s Zijin Mining Group Co., Ltd.(nearly 13 million shares).Pretium shares have climbed 23% so far in 2015 to its current price of $8.23.

Premier Gold Mines Limited (TSX: PG): Premier’s Trans-Canada Property in northern Ontario has an Indicated resource of 4.9 million gold ounces (1.7 g/t) and an Inferred resource of 2.7 million ounces (3.7 g/t). The company also has a development project in Red Lake, Ontario that’s 51% owned by Goldcorp, as well as its 100%-owned McCoy-Cove Gold Property in Nevada with high-grade potential at depthlocated immediately south of Newmont’s Phoenix Mine. Premier has about $32 million in cash and investments and a market cap of approximately $366 million. Shares of Premier Gold have risen 22% so far in 2015 to its current price of $2.30.

Detour Gold Corp. (TSX: DGC). Detour has a single producing mine in Canada, that being Detour Lake in northern Ontario, with 15.5 million ounces of Proven and Probable gold reserves at less than 1 gram per tonne. For 2015, the company expects to produce between 475,000 and 525,000 ounces of gold at all-in sustaining costs of US$1,050 to $1,150 per ounce. Detour Gold has about US$135 million in cash and a market cap of about $2 billion. Detour shares have moved up 35% so far in 2015 to its current price of $12.77.

Primero Mining Corp. (TSX: P): Primero’s CEO Joseph Conway was the former boss of IAMGOLD, taking it from a $50 million joint venture company to a $6 billion gold producer. Primero owns 100% of the San Dimas gold-silver mine in Mexico and 100% of the Black Fox mine in northern Ontario. Its production is expected to increase by up to 20% in 2015 to between 250,000 and 270,000 gold equivalent ounces with all-in sustaining costs estimated at US$1,000 to $1,100. One of Primero’s directors, Rohan Hazelton, is currently Vice President of Strategy at Goldcorp. Primero Mining has a market cap of about $900 million and its stock price has gained 24% so far in 2015 to its present price of $5.55.

Richmont Mines Inc. (TSX: RIC): Richmont has two operating mines in Quebec and one in northern Ontario. The company forecasts production in 2015 of 78,000 to 88,000 gold ounces at a cash cost of US$850 to $940 per ounce. Upside for this company could come from developing the deep, high-grade zone at its Island gold mine, estimated at about 9.5 g/t.Richmont Mines has a market cap of $212 million and its share price has jumped 19% so far in 2015 to its current price of $4.40.