Topic: How To Invest

Power Growth Investor Hotline – Friday, June 3, 2022

Article Excerpt

YAMANA GOLD INC., $7.16, is a hold. The miner (symbol YRI on Toronto) owns and operates five gold mines, in Canada, Brazil, Chile and Argentina. This includes the Cerro Moro gold/silver mine in Argentina. It started up in mid-2018. Yamana received a $6.7 billion U.S. takeover offer this week from South African-based Gold Fields (ADR symbol GFI on New York). Under the terms of the transaction, all of the outstanding Yamana shares will be exchanged at a ratio of 0.6 of a Gold Fields ADR for each share held. Upon closing, Gold Fields shareholders will own 61% of the combined firm, and Yamana shareholders will own 39%. The combination of the two firms will create a company with 14 mines mostly across mining-friendly jurisdictions in North America, South America, Africa and Australia. As well, the combined entity will be the third largest by gold production in 2024, and fourth largest by market capitalization. The new firm will also benefit from the near-term growth of…