Goldcorp: Not a prospective buyer of TMM or Ana PaulaI have speculated quietly to myself whether it was Goldcorp that was selling through Anonymous and now believe that this just may be the major holder that is eliminating their position in TMM. TMM paid the loan off, and they are sitting on a double with their 9.9% ownership. I also thought they were a logical bidder for TMM and Ana Paula, but with this possibility quashed this summer, I do feel GC could be the seller.
End of September is important because it is a Fiscal Year end for many funds. Hence, sell before the close of the FY. We can review holdings post Oct 1. We can also read GC financials so we can see their holdings - what they maintain, what they sold.
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Goldcorp Inc. has hired Bank of Nova Scotia to lead the sale process for Los Filos, its gold and silver mine in Mexico, according to two sources familiar with the situation, after putting the asset on the block earlier in the summer.
David Garofalo, chief executive of the Vancouver-based gold miner, said in late July that Goldcorp was looking at offloading the mine, as well as weighing options for its Alumbrera mine in Argentina and the Marlin mine in Guatemala.
An open pit and underground mine in southern Mexico, Los Filos has proven and probable gold reserves of 1.46 million ounces and 10.55 million ounces of silver.
Its net asset value was estimated at $617-million in an August Royal Bank of Canada report. The mine is now operating under a revised, shorter mine life plan that targets higher grades of gold.
Goldcorp could either make a cash sale to a large player or target a junior or intermediate miner with an arrangement that includes shares of the acquirer, said the sources, who declined to be named as the matter is not public yet.
Canadian gold miner Torex Gold Resources Inc. is seen as a logical buyer because it has a mine about 41 kilometres from Los Filos, the sources said.
Several other Canadian and global players with mines in Mexico could also take a look, the sources added.
With Torex ramping up its own Guerrero mine, it’s unclear how keen the company is to double down in the region, which has had social and crime issues and the occasional shutdown.
“As neighbours with potential synergies, it is almost incumbent upon us to look. We will do so to find out if we should be interested,” Torex CEO Fred Stanford said.
Goldcorp declined comment, and Scotiabank did not immediately respond to a request for comment.
Other Canadian gold miners with a presence in Mexico include Yamana Gold, Agnico Eagle Mines, New Gold, Argonaut Gold Inc., Alamos Gold Inc., Timmins Gold Corp., McEwen Mining and Primero Mining Corp.
Considered by Goldcorp as a non-core asset, Los Filos is a “smaller scale” mine that lacks economies of scale, Garofalo told Reuters in the July interview.
Los Filos gold production is estimated at 328,000 ounces this year and 404,000 ounces in 2017. It is expected to slip to 166,000 ounces in 2020, its final year of operation, RBC analysts have forecast.