Aurico Gold (TSE:AUQ)

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Aurico Gold (TSE:AUQ)

Postby Pixel8r » Thu Oct 28, 2010 1:22 pm

Gammon Gold is a producing mid tier gold & silver miner based in Mexico. They have three mines (in 2 camps) currently in operation and another which they are currently exploring. They are also in the process of acquiring Capital Gold, which is another Mexican Gold miner. They are traded on the TSE under the symbol of GAM and also the NYSE as GRS.

Here's their website - http://www.gammongold.com

Here's their chart;

Image

-=Updated chart link=-


Here's a link to their latest presentation (Oct 2010) which is mainly about the combined company;

http://www.gammongold.com/library/prese ... 0FINAL.pdf

Here's an interesting image from the report above;

Image


I like the look of the combined company 2011-2012 Gold cash cost of $163/oz.

I think I will add a few of these into my ISA over the next week or two.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Sat Oct 30, 2010 3:10 pm

I bought a few of these within my iSA on Friday, will probably add to them over the next year.
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Mon Nov 08, 2010 1:20 pm

Gammon have just released their 3rd quarter results;

http://www.gammongold.com/press/11-08-1 ... %20CKM.pdf

    • Excluding cash flows of negative $4.0 million related to El Cubo, the Company reported positive cash flow from operations of $35.2 million, or $0.25 per share, as compared to $13.9 million, or $0.11 per share, in the same period in 2009, a $21.3 million, or $0.14 per share improvement.

    • Excluding a $4.9 million loss before other items related to El Cubo, earnings before other items were $16.0 million, or $0.12 per share, as compared to a loss before other items of $2.1 million, or $0.02 per share, in the same period in 2009, an $18.1 million, or $0.14 per share improvement.

    • Excluding a $5.9 million net loss related to El Cubo, net earnings were $13.4 million, or $0.10 per share, as compared to a net loss of $1.2 million, or $0.01 per share, in the same period in 2009, a $14.6 million, or $0.11 per share improvement.

    • On a consolidated basis, positive net free cash flow of $3.9 million as compared to negative net free cash flow of $4.6 million in the same period in 2009, an $8.5 million, or a $0.06 per share improvement.

    • Cash costs at Ocampo were $411 per gold equivalent(*) ounce as compared to $406 per gold equivalent(*) ounce for the same period in 2009. Utilizing Ocampo’s silver revenues as a by‐product cost credit, third quarter total cash costs were negative $121 per gold ounce sold as compared to a positive $83 per gold ounce sold for the same period in 2009.
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Sat Mar 26, 2011 5:01 pm

Gammon confident of clinching Capital Gold deal

By Euan Rocha | Fri Mar 25, 2011 1:49pm GMT

  • Gammon confident its offer will be approved on April 1
  • Says offer is "a real deal" compared with Timmins bid (Adds details from interview, background. In U.S. dollars)

TORONTO, March 25 (Reuters) - Gammon Gold (GAM.TO) is "absolutely confident" most Capital Gold (CGC.A) shareholders support its takeover bid, valuing the company at about $408 million, and will vote in favor of it on April 1, Gammon's chief executive said on Friday.

"In our conversations, shareholders are very supportive of Gammon, for the same reasons we've been saying," CEO Rene Marion said in an interview with Reuters.

"First of all it's a real deal," Marion said. "It's money on the table, it's money now, not perhaps money later that is subject to a bunch of conditions."

Gammon and smaller rival Timmins Gold TMM.TO have battled for months to win control of Capital Gold, which owns the El Chanate mine in northern Mexico, a region where both Gammon and Timmins already own operating gold mines.

Marion declined to disclose the percentage of Capital's shareholders backing Gammon's offer, but noted that Gammon is quite certain it has the numbers needed to carry the day when Capital's shareholders vote on the offer on April 1.

"It's safe to say that management is extremely optimistic that we will meet that threshold of 50 percent plus 1," he said.

Capital Gold's board and two proxy advisory firms -- ISS and Glass Lewis -- have advised shareholders to vote in favor of the Gammon offer.

Gammon is offering $1.09 plus 0.5209 of a Gammon share for each Capital share, valuing the U.S. company at about $408 million based on Thursday's close.

The Timmins offer of 2.27 Timmins' shares plus $0.25 in cash for each Capital share, values the company at roughly $382 million, based on Thursday's close...
"Money is Gold, and nothing else"
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Re: Gammon Gold (TSE:GAM)

Postby Capitalist_Pig » Sun Mar 27, 2011 1:35 pm

I believe Timmins had a forml 35% of backing of Capital's shareholders before this thing turned hostile (Sprott and some other big names). It's probably higher now, given the way Capitals management has handled it.
A lot of the time, the stock market is just like Tescos ... You just gotta find the value packs, reduced to clear, and buy one get one free offers!
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Thu Mar 31, 2011 7:20 pm

Vote tomorrow.

CAPITAL GOLD CORPORATION URGES ITS STOCKHOLDERS TO CONSIDER THE FACTS OF THE SUPERIOR BID BY GAMMON GOLD

NEW YORK, March 25, 2011 – Capital Gold Corporation (NYSE AMEX: CGC; TSX: CGC) today urged stockholders to consider all the facts when voting on the approval of the amended merger agreement with Gammon Gold, Inc., which will provide CGC stockholders with a substantial premium and a superior value to the proposal made by Timmins Gold.

The CGC board of directors strongly recommends stockholders review the facts outlined below and vote today FOR the Gammon merger proposal.

THE GAMMON OFFER PROVIDES A SUBSTANTIAL PREMIUM TO CGC STOCKHOLDERS

Based on current trading levels, the Gammon merger has a value of $6.34 per share of CGC, delivering a premium of 67% to the trading price of CGC’s common stock on September 24, 2010...
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Sat Apr 02, 2011 3:22 pm

Not quite sure what to make of this, haven't heard anything from Gammon themselves. :?

Gammon Gold pulls plug on Capital Gold Corp acquisition

31st Mar 2009, 7:44 pm

Gammon Gold Inc. (NYSE: GRS, TSX: GAM) released a very short statement to the stock exchange this afternoon confirming that discussions regarding its proposed takeover of fellow gold producer, Capital Gold Corp (TSX: CGC) had ended. No reason was given.

On March 12, 2009, Gammon Gold said it was offering 0.1028 shares in Gammon Gold for each Capital Gold share, which represented a 29% premium to Capital Gold shareholders based on the 10 day volume weighted average trading prices of Gammon Gold and Capital Gold up to the 11th March, 2009. The deal valued Capital Gold Corp at C$168 million at the time of the announcement.
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Sat Apr 02, 2011 3:24 pm

Now I'm even more confused! :?

Capital Gold Stockholders Approve Merger With Gammon Gold

Apr. 1, 2011 (PR Newswire) --

NEW YORK, April 1, 2011 /PRNewswire/ -- The board of directors of Capital Gold Corporation (NYSE AMEX: CGC; TSX: CGC) today announced that, based on a preliminary estimate provided by its proxy solicitor, it believes it has received sufficient votes to approve CGC's merger with Gammon Gold Inc. at today's reconvened stockholders meeting.

Official certification of the voting results by the independent inspector of election, IVS Associates, is expected in the next few days, at which time the certified results will be announced.

Steve Cooper, Chairman of the board of directors stated, "The board and management team appreciate the support we have received from our stockholders during this difficult proxy contest, and ultimately believe that they recognized the compelling strategic and economic benefits of the merger with Gammon. We look forward to the official certification, and we expect to complete the merger soon after the vote is certified."...
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Wed Apr 06, 2011 5:46 pm

Gammon Gold Reports High‐Grade Discovery at La Balleza Vein in Venus Project: 0.7m grading 62.20 grams per tonne Gold and 2700 grams per tonne Silver

Toronto, April 6, 2011: Gammon Gold Inc. (“Gammon”) (TSX:GAM and NYSE:GRS):

Gammon is pleased to announce that a new discovery of high‐grade gold‐silver mineralization in the La Balleza Vein in the north‐central portion of the Venus property.

Venus Project Drilling Highlights

Highlights from the 12 holes for which assays have been received include:

 VEN‐009, 0.7 metres grading 62.20 grams per tonne gold and 2,700 grams per tonne silver, or 111.29 grams per tonne gold equivalent(1).

 VEN‐004, 0.6 metres grading 8.58 grams per tonne gold and 1,050 grams per tonne silver, or 27.67 grams per tonne gold equivalent(1).
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Fri Apr 08, 2011 10:11 pm

:D :clap:

Gammon Gold Completes Acquisition of Capital Gold

Toronto, April 8, 2011: Gammon Gold Inc. (TSX:GAM) (NYSE:GRS) (“Gammon”) is pleased to announce that it has completed its acquisition of Capital Gold Corporation (NYSE AMEX: CGC) (TSX:CGC). Capital Gold will operate as a subsidiary of Gammon Gold. Shares of Capital Gold will be delisted from trading on the NYSE AMEX effective Friday, April 8, 2011.

Shareholders of Capital Gold voted to approve the merger with Gammon at a special meeting of shareholders held on April 1, 2011. More than 82 percent of Capital Gold’s shareholders voted, of which 32,353,144 shares (or close to 2/3) voted in favour of the transaction.

The acquisition of Capital Gold significantly increases Gammon’s gold production and almost doubles its gold reserves, while strengthening the Company’s position as a leading, low cost, diversified gold and silver producer focused on Mexico...
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Re: Gammon Gold (TSE:GAM)

Postby Pixel8r » Sun Jun 05, 2011 4:18 pm

Here's a pesentation by Rene Marion at the European Gold Forum on Gammon Gold's current operations, exploration & development, he also covers the recent buying of Capital Gold.

Video and pdf on this link - http://www.gowebcasting.com/events/denv ... tream/2019
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Re: Aurico Gold (TSE:AUQ)

Postby Pixel8r » Wed Jun 22, 2011 3:56 pm

Gammon Gold changed their name to Aurico Gold last week and are now trading under the symbol of AUQ on the TSE and NYSE.

I have updated the name of this thread.

Here's an chart for the new symbol and link to the update

Image
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Re: Aurico Gold (TSE:AUQ)

Postby Pixel8r » Thu Aug 11, 2011 1:54 pm

AuRico Gold Reports Continued Strong Performance in the Second Quarter [PDF]

Operating Cash flow Increases 247%, Net Free Cash Flow Increases 261% and Record Margins of 75%
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Re: Aurico Gold (TSE:AUQ)

Postby Pixel8r » Fri Aug 19, 2011 2:25 pm

I am pleased with the first 10 months of holding this stock, am up 87% so far which is good for a mid-tier. Here's a graph from about when I got in;

Image
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Re: Aurico Gold (TSE:AUQ)

Postby Pixel8r » Mon Aug 29, 2011 4:27 pm

AuRico Gold to Acquire Northgate Minerals and Create A Leading Intermediate Gold Company

Toronto: August 29, 2011: AuRico Gold Inc. (“AuRico”) (TSX:AUQ) (NYSE:AUQ) and Northgate Minerals Corporation (“Northgate”) (TSX:NGX) (NYSE-Amex:NXG) are pleased to announce that they have entered into a definitive acquisition agreement (the “Agreement”) to create a new leading intermediate gold producer. The new company will have 5 operating gold mines, a sixth mine targeting production in 2012 and 3 gold development projects in Mexico, Canada, and Australia, three of the top global mining jurisdictions. The combined company is completely unhedged and offers full exposure to record gold and silver prices and an exceptional growth profile from approximately 475,0001 gold equivalent (“Aue”) ounces2 this year to 730,000+3 Aue ounces in 2013 (growth of approximately 54%). All figures in Canadian dollars, unless otherwise indicated...
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Re: Aurico Gold (TSE:AUQ)

Postby fexx » Tue Aug 30, 2011 8:30 am

Yaaay, go Northgate!!

Cheap as chips (IMO)
:)
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Re: Aurico Gold (TSE:AUQ)

Postby Pixel8r » Tue Aug 30, 2011 8:45 am

fexx wrote:Yaaay, go Northgate!!

Cheap as chips (IMO)
:)

Aurico took a 20% hit yesterday, but that does sometimes happen when buyouts are announced only to bounce back soon enough.
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Re: Aurico Gold (TSE:AUQ)

Postby fexx » Wed Sep 14, 2011 7:43 pm

Pixel8r wrote:Aurico took a 20% hit yesterday, but that does sometimes happen when buyouts are announced only to bounce back soon enough.


Interesting point here re: AUQ/NGX being dropped from GDXJ.

http://seekingalpha.com/article/293249- ... miners-etf

We’ll also be considering various strategies related to the pending Northgate Minerals (NXG) and AuRico Gold (AUQ) merger since as a combined entity they would have been dropped from the index (i.e. too large)... If the index drops AuRico after the merger is completed (including the converted Northgate shares), liquidating this position would be equivalent to about 8 days of trading volume.


Would it be added to GDX??
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Re: Aurico Gold (TSE:AUQ)

Postby Pixel8r » Wed Sep 14, 2011 9:13 pm

The main thing to think about is the fact that mid tier companies get a stronger valuation than juniors. This has been a point that Endeavour Mining have been going on about for years and why they are also buying another company to move from the junior space to the mid tier space.

Here's a graph from some analysis that someone has done into the Endeavour merger which shows how cheap they will be when combined. They should when combined quickly catch a bid as analysts start to realise it and recommend them to institutions etc.

I would imagine that the same will apply to Aurico and once they have finished this merger they will catch a bid. I am not sure what the criteria for being included in the GDX is.

Image
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Re: Aurico Gold (TSE:AUQ)

Postby fexx » Wed Sep 14, 2011 9:51 pm

My strategy is a large core position in allocated physical and stocks for more speculative play, hence mainly juniors/explorers.

However, many juniors are looking a better bet than some larger players. Miners seem cheap at the moment, and EDV particularly so.

It's 2.36 at the moment, below where I bought at 2.48 & it looked cheap then!
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