Back to AUQ
Acquisition Speculation Increases in the Junior Gold Mining Industry After Yamana's Purchase

NEW YORK, NY -- (Marketwire) -- 07/17/12 -- Junior Miners have been hit hard in 2012 as gold prices have struggled to gain any upward momentum in 2012. The Market Vectors Junior Gold Miners ETF (GDXJ) has fallen over 25 percent year-to-date. The industry has been a hotbed of acquisition speculation in recent weeks after Yamana Gold announced it had acquired Extorre Gold Mines Ltd. for $414 million, or $4.26 a share (a 68% premium). Five Star Equities examines the outlook for companies in the Gold Industry and provides equity research on Kinross Gold Corporation (NYSE: KGC) (TSX: K) and AuRico Gold Inc. (NYSE: AUQ) (TSX: AUQ).

Access to the full company reports can be found at:

www.FiveStarEquities.com/KGC

www.FiveStarEquities.com/AUQ

Junior miners with quality mining projects have been attractive targets for major gold companies in 2012, as many juniors have seen share prices plummet due to poor market conditions. While Yamana Gold did pay a 68 percent premium, shares of Extorre were trading as high as $15 last July. Yamana had been

"Part of it was market conditions, and part of it is the coincidence that we completed our due diligence and came to the conclusion that there was value in the asset and value in the purchase," Yamana chief executive Peter Marrone said in an interview.

Five Star Equities releases regular market updates on the Gold Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

Kinross Gold recently announced that it has completed the sale of its 50 percent interest in the Crixás (Serra Grande) gold mine in Brazil to an affiliate of AngloGold Ashanti for gross cash proceeds of US$220 million. The company is scheduled to release its financial statements and operating results for the second quarter of 2012 on Wednesday, August 8, 2012, after market close. Shares of Kinross are down over 27 percent year-to-date.

Endeavour Silver Corp. and AuRico Gold recently announced that they have completed the acquisition by Endeavour of 100% interests in AuRico Gold's El Cubo silver-gold mine in Guanajuato State, Mexico and the Guadalupe y Calvo silver-gold exploration project in Chihuahua State, Mexico. Shares of AuRico Gold have fallen over 12 percent in the last three months.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:

www.FiveStarEquities.com/disclaimer

Add to Digg Bookmark with del.icio.us Add to Newsvine

Back to AUQ
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki