Iamgold played it well in the last cycle, securing Orezone's Essakane deposit in Burkina Faso and adding 300k oz pa production for a $139m acquisition price in the depths of December 2008.
Here they discuss looking for an acquisition in the Americas for $500m.
Steve Letwin, chief executive officer of midtier gold miner Iamgold Corp. (IMG-T 12.66 0.15 1.20%), practically rubs his hands in glee as he talks about plans to propel the company into the major leagues in as little as five years.
With his Toronto-based company sitting on $1.4-billion in cash and with zero debt on the balance sheets, Mr. Letwin lays out a plan to nearly double production by 2017 from the current 850,000 ounces, with most of that to come from acquisitions, including one in coming months that will likely be worth between $400-million and $500-million.
“If we can’t pull the trigger on something in the next three months that makes sense for our shareholders we haven’t done our job,” said Mr. Letwin, a 30-year resource industry veteran who has broken ground from Canada to Colombia to deepest Africa.
“And if we’re going to buy, we’re going to buy now. These equities are ridiculously cheap, some of them.”
Mr. Letwin said his mantra is to buy in the down cycles, especially when he’s cash-rich while rivals are not, and there is less competition for assets even as equity valuations retreat.
27th April 2012 we have our Answer -
See Detailed Post - Iamgold Buy Trelawny
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