RE:RE:Globe articleAs part of his pitch for the acquisition, which needs to be approved by Richmont shareholders,
Alamos chief executive John McCluskey said the combined companies can expect a "REVALUATION" from investors as they become "a top 10 Canadian and North American gold producer with nearly 60% of production coming from Canada.
The Alamos CEO also noted the company will be one of the sector's lowest-cost producers coming out of this transaction; the mine near Wawa produces gold for approx. $590 an ounce and the metal is now worth about $1300 an ounce.
Mr M is not the only CEO who sees a town such as Wawa as a great place to plant the corporate flag. At a time when mining takeovers are rare, there's speculation a rival gold miner may try to top Alamos's all-stock bid for Richmont, or that Alamos will need to sweeten its bid, as the.company's share price dropped after the offer was announced.
Overall, the mining sector is still near the bottom of a cycle, with prices for most commodities bumping along at relatively low levels.Mergers and acquisition activity is muted, a stark contrast with the steady stream of deals that tend to happen when metal prices are on the upswing.
to be continued