It has taken me forever to pull the trigger but I finally bought some TMM today. I also own and have had great success with Torex. I was holding back until I heard more news about financing for Ana Paula but the thing that tipped me over the edge was reading the following.
Risk, reward, blah, blah. :). GLTA.
Torex Gold could act opportunistically to acquire additional precious metals assets in the Americas, CEO Fred Stanford told BNamericas.
The company, whose El Limn-Guajes (ELG) mine in Mexico is ramping up to full output after reaching commercial production last year, has worked with the board to figure out an M&A strategy.
"There's no rush, but we have thought it through," Stanford (pictured) said. "The chair of our board [Terrance MacGibbon] has an excellent track record of finding assets that have been blessed by nature and challenged for other reasons, and has done a good job of picking those up.
"If one of those shows up we know what would interest us. The board and management team are all marching in the same direction."
However, the Toronto-based company is not "actively looking for stuff. But we could act opportunistically."
MEDIA LUNA
The key rule of any acquisition would be not to jeopardize cash needed to develop Torex's Media Luna project, on the same land package as ELG in Guerrero state.
Torex plans to develop the US$482mn project using cash flows from ELG, while paying down about US$400mn in debt, Stanford told BNamericas previously. Construction could start in H2 and would take four years.
TARGETS
Possible acquisition targets for Torex would be precious metals projects in the Americas, with the potential to produce at least 150,000oz/y gold, the CEO said.
"There are some countries in the Americas we wouldn't go to. We are agnostic about social problems, we're generally pretty good at dealing with those, so we're not afraid of taking on that sort of risk," he added.
While the objective of any deal would be cash flow diversification, Torex would consider additional assets in Mexico, including other parts of Guerrero state, Stanford said.