GoldMinerPulse - Gold Mining and Silver Mining Stocks News & Views

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Dundee Precious Metals Announces Sale of Kapan for US$25 Million and a 2% Net Smelter Return Royalty, 1 March 2016

Most recent resource estimate for the Kaplan mine showed 0.420M oz Indicated, 0.935M oz Inferred gold plus silver and base metals.

Proceeds include $15M in Polymetal stock.

The deal works out to approximately US$18.50 MINUS any applicable discount on $15M in Polymetal stock PLUS the value of the 2% NSR.

Very hard to say if this is a good deal for Dundee.

See Dundee Precious Metals filings for Mar1/16 in to retrieve the complete story.

Barrick Gold and the Cowal Mine Sale, 24 May 2015

Barrick announced the sale of the Cowal Mine in a 24 May 2015 news release.

Sale price is at US$550 in cash on closing. At the 25 May 2015 close, the summary metrics are:

  • Decrease in Gold Reserves + Resources: 3.43M ounces

  • Increase in Enterprise Value per oz Gold Equivalent: US$0.44

  • Market Capitalization per ounce of Gold Equivalent: US$50

  • Cowal In Situ Gold Reserve + Resource Valuation: $160 US / oz

From a ABX perspective the deal looks pretty attractive given the Cowal in situ valuation versus the current ABX market capitalization per ounce of gold equivalent resource.

ABX Metrics Before The Cowal Mine Sale Completes

With the Cowal Mine, the ABX summary metrics at the 25 May 2015 close were:

ABX Metrics including the Cowal Mine

ABX Metrics Assuming Cowal Mine Sale Completes

Assuming the sale completes as expected, the updated metrics for ABX at the same close are:

ABX Metrics assuming the Cowal Mine Sale Completes

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