Saturday, 13 September 2014

Gold M&A - Fresnillo Buyout Newmont's Penmont Stake in Mexico

Fresnillo will move closer towards being a balanced Silver and Gold producer with their $450m buyout of Newmont from their Penmont business in Mexico.
Once its gets full control of the joint venture Fresnillo will have an annualised production capacity of around 600,000-620,000 ounces of gold before ramping up to 750,000 ounces by 2018. The latter target could be raised further once the board approves development of the Mega Centauro and Centauro Deep projects, a spokesman said. Fresnillo operates three other mines in Mexico and expects to produce 43 million ounces of silver this year. Fresnillo is considering hedging part of the extra gold production it will get through the acquisition.

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