Kinross Gold Corporation (K-T) : Kinross Launches Friendly Share & Cash Bid for Yukon Focused Underworld Resources (war hier mal ganz am Anfang die Rede von)
Deal values UW at $137.5mm - puts Yukon projects in spotlight.
Friendly bid includes 0.141 of a Kinross share + $0.01 in cash; Kinross already holds a 9.9% stake. Requires 2/3 of UW shareholder acceptance.
UW’s White Gold project valued at $78/oz (1.6mm Ind. & Inf. oz).
Indicated res. totals 9.8mm tonnes at 3.2 g/t Au (+1mm oz), with 9.4mm inf’d tonnes at 1.9 g/t (578k oz). Acq’n values global resource at $78/oz.
Transaction draws eyes to Yukon projects with good metallurgy.
Bid draws attention to Yukon projects, particularly those with good metallurgical characteristics – we highlight VIT, ATC & GPD.
We reiterate a Market Perform recommendation and $22.00 target.
Our target is based on (25:75 wt) 2.3x NAVPS of US$8.13/sh (US$8.12/sh old) & 15x FY10 CFPS est. of US$1.31 (US$1.32 old).
