Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Indexes  >  World  >  S&P 500    

S&P 500
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisHeatmapComponents 
News SummaryAll newsNews of the components ofTweets

McEwen Mining targeting acquisition spree to get S&P listing

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/07/2017 | 07:12pm CET
McEwen, chief owner and chairman of McEwen Mining company is pictured after interview with Reuters in Zurich

McEwen Mining is on a buying spree as the Canadian gold company aims to grow its market capitalization by more than five times to achieve its ambition of a listing on the S&P 500, chief owner Rob McEwen said on Tuesday.

The Toronto company is seeking to buy several assets, ideally distressed companies or mines whose owners are in financial difficulties, to help raise its market capitalization to $5 billion from under $1 billion now.

In May this year, Canadian resources magnate McEwen said he was giving himself two-to-three years to make his company only the second gold mining company in the S&P 500.

On Tuesday, in Zurich, where he was meeting investors, he stretched the deadline to four years.

"We have to do some further M&A and have some further exploration success," he said.

"I always favor distressed assets - they are a little more work, the market has to be a bit more patient, but that's where you get your best value."

In August, McEwen bought the Black Fox mining complex in Timmins, Canada, for $35 million from Primero Mining Corp, which had invested more than $500 million, but sold it to reduce its debts.

The site will produce 50,000 ounces of gold this year, and roughly the same next year, McEwen said.

The company expects to increase its own annual gold production from 146,000 equivalent ounces in 2016 to 223,000 by 2020 from its four mines.

"It is conceivable that we can get to 300,000 ounces organically, but we have to more than double that to get to the market cap we need," McEwen said.

Most of the company's acquisition drive would be in the Americas, although he would also look at Europe, with the company spending up to $200 million for the right assets.

He said he would avoid Africa because of political risk.

Some industry sources say there was not enough consolidation in the junior mining sector last year, when commodity prices rallied more quickly than widely expected, after the crash ended early 2016.

They say that was particularly true for gold exploration, which attracts the most adventurous as it requires relatively little infrastructure, but it still absorbs capital for years before mines start producing and delivering a profit.

McEwen said he did not expect a profit until 2019 as his company has invested $60 million in starting production at a new mine in Colorado and around $15 million in exploration.

Gold prices <XAU=> have rallied by around 10 percent this year, less than most base metals, which have risen by more than a fifth.

(Additional reporting by Barbara Lewis, editing by David Evans)

By John Revill

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on S&P 500
11/17DJMARKET SNAPSHOT : Dow, S&P Log Weekly Loss As Investors Weigh Earnings, Tax Plan
11/17DJMARKET SNAPSHOT : Dow, S&P On Track For Weekly Loss As Investors Weigh Earnings,..
11/17DJMARKET SNAPSHOT : Dow, S&P On Track For Weekly Loss As Investors Weigh Earnings,..
11/17DJMARKET SNAPSHOT : Dow, S&P On Track For Weekly Loss As Investors Weigh Earnings,..
11/17DJMARKET SNAPSHOT : Dow, S&P On Track For Weekly Loss As Investors Weigh Earnings,..
11/17DJMARKET SNAPSHOT : Dow, S&P On Track For Weekly Loss As Investors Weigh Earnings,..
11/17DJMARKET SNAPSHOT : Weekly Win For U.S. Stocks In Jeopardy As Russia Probe Moves C..
11/17DJS&P 500, Nasdaq Futures -- Technical Analysis
11/17DJMARKET SNAPSHOT : Weekly Win For U.S. Stocks In Jeopardy As Russia Probe Moves C..
11/17DJMARKET SNAPSHOT : Weekly Win For U.S. Stocks In Jeopardy As Russia Probe Moves C..
More news
Chart S&P 500
Duration : Period :
S&P 500 Technical Analysis Chart | US78378X1072 | 4-Traders
Technical analysis trends S&P 500
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Top / Flop S&P 500
FOOT LOCKER 40.82 Delayed Quote.28.16%
VIACOM 26.15 Delayed Quote.10.38%
ROSS STORES 72.25 Delayed Quote.9.99%
GAP INC 29.4 Delayed Quote.6.99%
21ST CENTURY FOX 30.48 Delayed Quote.6.57%
COGNIZANT TECHNOLOGY SOLUTIONS 72.91 Delayed Quote.-3.08%
SCANA CORPORATION 43.45 Delayed Quote.-3.44%
PACCAR 66.69 Delayed Quote.-4.32%
RYDER SYSTEM, INC. 76.35 Delayed Quote.-4.34%
CUMMINS INC. 159.41 Delayed Quote.-4.62%
Heatmap :