Kinross Gold rebuffed Endeavour takeover bid, reports say
Endeavour Mining Corp. (EDV-TSX-LSE, EDVMF-OTCQX,) made a takeover approach to Kinross Gold Corp. (K-TSX, KGC-NYSE) in recent months that was rebuffed by the Canadian company.
Endeavour, an acquisitive gold miner backed by Egyptian billionaire Naguib Sawiris, was considering a potential cash and stock deal for Kinross, according to people familiar with the matter. A report published by Scotiabank said Endeavour held talks with potential partners about teaming up on a bid.
The report said talks between Endeavour and Kinross didn’t proceed beyond the initial stage due to differences over valuation and other issues.
Kinross shares have gained 16% in Toronto trading this year. Both companies have market caps above $5.9 billion. The Scotiabank report said it wasn’t immediately clear whether talks could revive at a later date.
A spokesman for Endeavour declined to comment and Kinross did not respond to calls and emails seeking comment.
On Friday, Kinross shares eased 1.9% or 12 cents to $6.21 on volume of 1.12 million. The shares are currently trading in a 52-week range of $7.47 and $3.91.
Kinross is a senior gold mining company with operations and projects in the U.S., Brazil, Mauritania, Chile and Canada. The company recently said it is on track to meet its 2023 production guidance of 2.1 million gold equivalent ounces (AuEq) (+/-5%). The company also said its annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2.0 million ounces.
These forecasts were released after Kinross reported production of 466,022 ounces AuEq from continuing operations in the first quarter of 2023. That was up from 378,421 ounces in the first quarter of 2022. The company attributed the 23% year-over-year increase to the ramp up of production at La Coipa (Chile) in 2022 and higher production at Paracuta (Brazil), Round Mountain (Nevada) and Fort Knox (Alaska).
Kinross was in the news in December, 2021, when the company agreed to acquire Great Bear Resources and its 100%-owned Dixie Project which is located in the Red Lake Mining District of northwestern Ontario.
Kinross said it was going ahead with the deal in the belief that Dixie has significant potential to become a top tier deposit that could support a long-life mine complex and bolster Kinross’ long-term production outlook.
Kinross and Agnico Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) are backing White Gold Corp. (WGO-TSXV), a company that recently reported an updated resource estimate for its flagship White Gold project in the Yukon’s Dawson City Range.
White Gold said inferred resources are up 41% from previous estimates to 942,000 ounces of gold. Indicated resources at the site currently stand at 1.15 million ounces of gold.
Endeavour is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Ivory Coast, and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian greenstone belt across West Africa.