Rio Alto is the 8th Ubika Gold 20 company to be taken over in the last 2 years.
Ubika Gold 20 (UG 20) Index component company Rio Alto Mining Limited (TSX: RIO) on February 9, 2015, announced that it has agreed to be acquired by Tahoe Resources Inc. (TSX: THO) in a stock and cash transaction valued at C$1.4 billion. Rio Alto Mining is just the latest of several companies that have been acquired from the UG 20 index during the past few years.
Rio Alto Mining is just the latest of several companies that have been acquired from the UG 20 index during the past few years. On May 21, 2014, Rio Alto itself reported that it would take over rival Sulliden Gold, another former UG 20 index component, at a 33% premium. Other companies in the Index that have been taken over in the past include Avion Gold, Gold-Ore Resources, PMI Gold Corp., Rainy River Resources, and RX Gold & Silver.
As well, UG 20 company Premier Gold Mines (TSX: PG) on February 5, 2015, said it had signed a definitive agreement to form a 50/50 partnership with Centerra Gold Inc. (TSX: CG) for the joint ownership and development of Premier’s Trans-Canada Property in northern Ontario. Premier Goldshares have gained more than 15% since to its recent price of $2.35.
The UG20 jumped 14.2% over the past month, ending February 2, 2015, outperforming both the TSX Mining Index and the price of gold with 7.8% and 6.2% monthly gains, respectively. Of the 20 constituent companies, 18 finished the month in positive territory with 16 registering double-digit returns, led by soaring shares of Argonaut Gold (TSX: AR).
In addition, three new component companies have been added to the UG20 recently: China Gold International Resources Corp. Ltd. (TSX: CGG), SEMAFO Inc. (TSX: SMF), and Primero Mining Corp. (TSX: P).
China Gold International operates two profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Gold Polymetallic Mine in Tibet. The company had US$583 million in cash (as of November 2014). China Gold International has 6.3 million ounces of Proven and Probably gold reserves along with 9.7 million in the Measured and Indicated category. It produced 165,000 ounces of gold in 2014 and the company expects that to rise to 260,000 ounces in 2015. China Gold also said it reduced its cash costs by 25% between 2013 and 2014.
SEMAFO, meanwhile, operates the Mana Mine in Burkina Faso, West Africa. In 2014, it produced 234,300 gold ounces at a total cash cost of $650 per ounce. SEMAFO expects to increase production by 11% in 2015 to between 245,000 and 275,000 ounces, while total cash costs are expected to fall by 9% to between $575 and $605 per ounce.
Finally, Primero Mining’s CEO Joseph Conway was the former boss of IAMGOLD, taking it from a $50 million joint venture company to a $6 billion gold producer. Primero owns 100% of the San Dimas gold-silver mine in Mexico and 100% of the Black Fox mine in northern Ontario. Its production is expected to increase by up to 20% in 2015 to between 250,000 and 270,000 gold equivalent ounces with all-in sustaining costs estimated at US$1,000 to $1,100. One of Primero’s directors, Rohan Hazelton, is currently Vice President of Strategy at Goldcorp.
See the other promising companies included in the Ubika Gold 20 index HERE >>
