RE:RE:RE:More M&A Action - $2.16 Billion All-Cash dealThis is very quick back of the napkin math, but from what I can see in the
Investor Presentation on their website, the main asset Osisko has is a 50% interest in the Windfall project (the other 50% is owned by the company that's aquiring them, Gold Fields. The Windfall discovery has 7.4 million oz of gold. Based on the purchase price today, and considering that Osisko only has a 50% interest in Windfall, this means Gold Fields is paying $2.16 billion CAD for 3.7 million oz of Gold.
This put a value on the deal of $583 CAD / oz of gold.
This is just a quick calculation. When you factor in Osisko's cash on hand the $ per oz calculation will decrease slightly. But overall VERY positive to see companies begin to pay up for promising mineral discoveries. To put this in perspective, I believe that Kinross ended up paying $360 CAD / oz when they bought Great Bear resources. Gold was $1,800 USD / oz back then, today gold is $2,450 USD / oz and climbing. The higher the price of gold goes (and stays), the more someone is willing to pay for an oz of gold in the ground.
TraderRC wrote: Good morning All,
Nice to see an all cash deal.
Can anyone provide some details on the estimated gold reserves the company had.
I had a quick look, and found reference to 3.1 m oz of gold, but this seems like a low amount, considering they are 50%owners, plus they have other claims in a large area of Quebec, but not sure how much exploration they have conducted there.
Maybe someone with superior research skills can find out and let us know. Would be interested to see what they based the price on.
In any case, all cash deal looks promising.
TraderRC