|Bid||24.59 x 0|
|Ask||24.60 x 0|
|Day's Range||24.57 - 25.25|
|52 Week Range||11.22 - 26.14|
|Beta (5Y Monthly)||0.23|
|PE Ratio (TTM)||482.75|
|Earnings Date||Nov 14, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||20.15|
ISS and Glass Lewis recommend shareholders of Kirkland Lake Gold vote in favour of proposed plan of arrangement involving Detour GoldISS states that the acquisition of Detour.
Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") today announced that leading proxy advisory firms Institutional Shareholder Services Inc. ("ISS") and Glass Lewis & Co., LLC ("Glass Lewis") have each recommended that Detour Gold shareholders vote FOR the proposed transaction whereby Kirkland Lake Gold Ltd. ("Kirkland Lake Gold") has agreed to acquire all of the issued and outstanding common shares of Detour Gold pursuant to a plan of arrangement (the "Transaction").
Kirkland Lake Gold Ltd's C$4.4 billion ($3.4 billion)all-stock offer to buy rival Detour Gold Corp has won backing from two influential proxy advisory firms on grounds the target's shareholders would reap benefits from a larger company, bolstering chances of the deal going ahead. Detour Gold said on Thursday that Glass Lewis & Co and Institutional Shareholder Services Inc recommended shareholders vote for in favor of the takeover, which Kirkland has said will generate up to $100 million in annual savings and add 600,000 ounces to its annual capacity. Kirkland in November offered 0.4343 share for each Detour Gold share amid a wave of gold sector consolidation.
(Bloomberg) -- Gold’s blistering rally isn’t over, according to fund managers who see another leg up for the precious metal.Lower-for-longer interest rates, a weaker dollar and the U.S. presidential election will provide multiple catalysts for gains, even as tentative trade peace breaks out between China and the U.S. Gold has surged by about a third since August 2018 and is up more than 2% this year, hovering near the highest in almost seven years.The price increase, combined with capital discipline among the larger miners, is generating a bonanza of free cash flow while mergers could spark share gains among smaller players, according to five precious metals fund managers interviewed by Bloomberg.“I have covered the sector for more than 20 years and I have never seen this kind of cash flow generation,” RBC Global Asset Management’s Chris Beer said.In fact, the ratio of share price-to-free cash flow among senior miners, an indicator of valuation, still hasn’t caught up to the gold price, suggesting more room to run for stocks. After more than $20 billion in mergers and acquisitions among large-cap miners last year, small and medium-sized companies could be next, providing another reason to buy.“It would be hard to eclipse the dollar value of M&A of last year, given there were some large deals, but we will likely see a higher number of deals this year,” Sprott Inc. CEO Peter Grosskopf said.Here’s the view from gold investors:Jon Case, CI Investments Inc.Gold likely to see some downside in the first half of the year as bond yields are expected to find a bottom. However, trade war and election rhetoric may heat up in the second half, supporting the price.The phase one trade deal between the U.S. and China announced Wednesday is like “putting the genie back in the bottle” and likely to be seen as a temporary solution by the market. The prospect of a Democrat in the White House will weigh on the equity market, pushing gold higher.Miners are generating good margins but valuation multiples haven’t yet reached bull market levels.When miners report fourth-quarter results, he’ll focus on 2020 guidance, capital discipline, how safe their margins are and how cash is being reinvested.In terms of mid-cap mergers, companies that aren’t in ETFs are “in real risk of being irrelevant” to asset managers. Combining the best management teams with the best assets will attract more ETF flows, keeping them relevant.Chris Beer, RBC Global Asset ManagementEven though rates will probably not go much lower, the Fed’s dot plot forecasts show they’ll be low for a while. Moreover, the U.S. dollar is likely heading into the weaker part of its cycle, which could lend to the “next leg up” for gold.Gold miners are now “impressively disciplined” with capital allocation and are generating free cash flow even with conservative gold-price assumptions. Single asset companies are trading at a discount. If these miners combine and grow their market value, generalist investors will have to take a look, due to their higher weight in the index. The deal between Detour Gold Corp. and Kirkland Lake Gold Ltd. would be such an example.Michael Bradshaw, Wells Fargo Asset ManagementHistorically, gold price rallies driven by geopolitical events are quite short-lived and there will likely be some volatility and downside to gold prices after the U.S.-China trade deal was signed.However, the lagging effects of the trade war will lead to falling bond yields and a potential rate cut by the Fed in the middle of this year.To pick the right stocks, he’ll be looking to see if free cash flow keeps up and what gold price companies are using to calculate reserves, maintain cost structures and increase margins.Robert Cohen, 1832 Asset ManagementIn a volatile gold market, “my job as a good stock picker is to own the stocks that I like to own with or without political events going on in the world.”Exploration plays are what excites Cohen as they have the most upside. About 40% of his stocks in the exploration sector are Australian-listed, and he likes Bellevue Gold Ltd. which has “good bang for your buck.”In North America, one of his favorite exploration plays is Great Bear Resources Ltd., which could be “the next Hemlo,” referencing to Barrick Gold Corp.’s giant mine in Ontario. K92 Mining Inc., SilverCrest Metals Inc., Mag Silver Corp. and Wesdome Gold Mines Ltd. are among other stocks that he likes.Peter Grosskopf, Sprott Inc.By no means is gold in a bull market yet. “It’s a decent market,” he said, and this has kept retail investors on the sidelines. The right indicator for a bull market will be more active equity offerings, which will indicate that outside investors are piling into the sector.He prefers silver over gold.Expects more deals focusing on companies with single-asset mines as their shares are trading at “basement levels” and “have been largely left behind” by broader investors.Torex Gold Resources Inc. and Pretium Resources Inc. are among those which could end up becoming targets.To contact the reporter on this story: Aoyon Ashraf in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jacqueline Thorpe, Steven FrankFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") reports its fourth quarter and full year 2019 production results, delivering in the top quartile of the Company’s 2019 guidance range.
Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") today announced that it has filed its management information circular and related materials with the Canadian securities regulatory authorities in connection with the Company’s proposed arrangement (the "Arrangement") under section 192 of the Canada Business Corporations Act involving Kirkland Lake Gold Ltd. (TSX:KL) (NYSE:KL) (ASX:KLA) ("Kirkland Lake Gold"). The circular is available on the Investor Relations section of Detour Gold’s website, www.detourgold.com/investors/ and under Detour Gold’s profile on SEDAR at www.sedar.com. Copies of the management information circular and related materials will be mailed to Detour Gold shareholders entitled to vote on the Arrangement at the Detour Gold special meeting of shareholders (the "Special Meeting").
Kirkland Lake Gold announced Monday that it would buy rival Detour Gold, following other big acquisitions and a rally in gold prices.
Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, has launched an investigation into whether the board members of Detour Gold Corporation (Other OTC: DRGDF) breached their fiduciary duties or violated the federal securities laws in connection with the company's proposed sale to Kirkland Lake Gold Ltd.
The latest deal in a raft of gold sector consolidation adds a third major asset to Kirkland's portfolio, adding annual production of around 600,000 ounces. Kirkland offered 0.4343 share for each Detour Gold share, implying a value for Detour of about C$4.01 billion ($3.01 billion). Major gold miners Barrick Gold Corp and Newmont Goldcorp Corp have also bulked up to boost growth and replace shrinking reserves, stoking expectations of more deals among a dwindling group of mid-tier players.
* At 9:39 a.m. ET (1439 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 48.47 points, or 0.29%, at 17,003.31. * A Chinese state-backed newspaper said on Monday, Beijing and Washington were "very close" to an initial trade agreement, adding to optimism sparked by comments over the weekend by a U.S. trade adviser that a deal was still possible this year. * Detour Gold Corp jumped nearly 5% after bigger rival Kirkland Lake Gold Ltd agreed to buy the miner for about C$4.89 billion ($3.68 billion) in an all-stock deal.
Canadian miner Kirkland Lake Gold Ltd's shares fell as much as 16% in Toronto on Monday after investors reacted negatively to the hefty premium it agreed to pay to buy smaller rival Detour Gold Corp in an all-stock deal. The latest deal in a raft of gold sector consolidation adds a third major asset to Kirkland's portfolio, adding annual production of around 600,000 ounces. Kirkland offered 0.4343 share for each Detour Gold share, implying a value for Detour of about C$4.01 billion ($3.01 billion).
Transaction Creates: +1.5 Moz/year gold producer; combines large-scale, long-life Detour Lake Mine (“Detour Lake”) with high-grade Macassa and Fosterville minesIndustry leader.
Detour Gold Corporation reports its operational and financial results for the third quarter of 2019. All amounts are in U.S. dollars unless otherwise indicated.
It hasn't been the best quarter for Detour Gold Corporation (TSE:DGC) shareholders, since the share price has fallen...
Detour Gold Corporation plans to release its third quarter 2019 operating and financial results after market close on Thursday, November 14, 2019, followed by a conference call and webcast the following morning.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a...
The new Credit Facility replaces the Company's previous US$500 million senior secured credit facility, which was comprised of a US$200 million term loan (maturing July 14, 2020 ) and a US$300 million revolving credit facility (maturing July 14 , 2022). The new Credit Facility has a four-year term, maturing September 25, 2023 . The new Credit Facility includes two financial covenants: (i) a "Net Debt to EBITDA" (or "Leverage Ratio") covenant of 3.5x (unchanged as compared to the previous facility) and (ii) an "Interest Coverage" covenant of 3.0x (reduced from 3.5x under the previous facility). The interest rate for drawn borrowings ranges from Libor + 2.00% to 3.125% (reduced from Libor + 2.215% to 3.125% under the previous facility), depending on the Leverage Ratio.