Tuesday, 18 September 2012

BMO - 76 New Gold Mines 2012-20 - Emerging Gold Stock Production Growth - Junior M&A Targets

This presentation by BMO dating from May 2012 was referenced by Romarco in their Denver Gold presentation.

There is some excellent information to review growth gold juniors and miners, covering

  • 76 potential new goldmines from 2012 to 2020
  • Ranked for "Appeal"
  • Mine Locations Pg.5
  • Mine Ownership and ranking Pg.6
  • Gold Production Growth by Stock - Pg.13
  • Stock price as % of Project NPV (vs 10% NPV @ spot gold, I'm assuming at 7th May, so near the bottom in gold stocks) Pg.14
  • Potential timelines to production Pg.18
  • Project capex and changing estimates over time Pg.19
  • IRR / NPV
  • Various rankings for likely acquisition strategies etc.
  • Stock production growth charts
The pursuit of growth opportunities has been a major driver for merger and acquisition activity within the global gold industry.  Larger gold stocks may consider acquisitions or divestiture to upgrade their project pipeline. Potentially attractive targets include: Argonaut, Aureus, Avion, Detour, Extorre, Perseus, Romarco, Rubicon and Torex based on the encouraging new project ranking combined with the relative corporate valuation. 
Clearly since this was written in May-12 Avion has been acquired by Endeavour and Extorre by Yamana. Interestingly one of the "weaker" projects identified, Trelawny's cote Lake was acquired by Iamgold.
As ever there are plenty of interesting juniors not covered, some perhaps at too early a stage to have mine build plans etc, but an excellent starting point.

BMO Document - Linked Here

Combine this with webcasts from the 2012 Denver Gold Show for some good due diligence.

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