The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Capital Gold Nixes Proposed Merger With Gammon Gold
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STUART MCDOUGALL, Jennings Capital Inc.
(04/01/2009)
Yesterday, Capital Gold Corp. announced its decision not to proceed with a proposed merger with Gammon Gold Inc. (TSX-GAM), which was announced on March 12, 2009. Neither company provided reasons for the deal’s termination, but noted in separate press releases that no further discussions would occur. No break fee is payable. CGC noted that production at its El Chanate mine, in Mexico, totaled 15,000 oz in the first three months of calendar 2009. This compares with our expectations of nearly 4,400 oz per month. . . .We forecast F2009 EPS of US$0.06 increasing to US$0.12 in F2010 and F2009 CFPS of US$0.08 increasing to US$0.14 in F2010. Our F2009 estimates have increased nominally to account for Q2/F09 financial results (released on March 13, 2009—net income was US$3.2 million and cash flow, US$4.6 million, both better than expected). CGC maintains a healthy balance sheet, with cash of US$8.9 million and total debt of US$10.3 million on January 31, 2009. We expect this to grow significantly over the balance of the year. . . .CGC continues to trade at a significant discount to NAV, earnings and cash flow. |
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