Zijin Mining Acquires Allied Gold for C$5.5B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Acquisition Deal: Zijin Mining has agreed to acquire Allied Gold for approximately C$5.5 billion (US$4 billion) in cash, with a purchase price of C$44 per share, representing a 5.4% premium over Allied Gold's Friday closing price, indicating strong market confidence in the transaction.
- Asset Portfolio: Allied Gold operates three producing assets and development projects in Côte d'Ivoire, Mali, and Ethiopia, expected to yield up to 400,000 ounces of gold last year, enhancing Zijin's resource allocation in Africa through this acquisition.
- Market Timing: The acquisition was announced as gold prices topped US$5,000 per ounce for the first time, reflecting strong demand for gold assets while providing significant cash value for Allied Gold shareholders.
- Strategic Implications: Allied Gold CEO Peter Marrone stated that this transaction crystallizes significant value at an all-time high share price for shareholders, highlighting Zijin Mining's expansion intentions in the global mining market and its focus on the gold sector.
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Analyst Views on AAUC
Wall Street analysts forecast AAUC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAUC is 29.15 USD with a low forecast of 25.19 USD and a high forecast of 33.11 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 31.670
Low
25.19
Averages
29.15
High
33.11
Current: 31.670
Low
25.19
Averages
29.15
High
33.11
About AAUC
Allied Gold Corporation is a gold producer. It operates a portfolio of three producing assets and development projects located in Cote d'Ivoire, Mali, and Ethiopia. Its portfolio includes Sadiola Mine, Cote d’Ivoire Complex, and Kurmuk Project. The Sadiola Mine is an open pit gold mine, located in the Kayes region of Mali, and the Diba open pit gold mine, over 15 kilometers (km) south of the processing plant at Sadiola. The CDI complex includes the Agbaou and Bonikro mills, located only over 20 km from each other, along with several open pit deposits located in the prospective Birimian gold belt. Its Agbaou and Bonikro Mine is an open pit gold mine, located in the Oume region of Cote d’Ivoire. The Kurmuk Project is an advanced stage development project in the Benishangul-Gumuz region of Ethiopia. The project design encompasses the Dish Mountain and Ashashire deposits, with exploration targets across the Kurmuk Project’s expansive over 1,450 square kilometers' of exploration territory.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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