This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

International Tower Hill: We're Not For Sale

Credit Suisse, with a neutral rating, says failing a takeover bid, a rising gold price is the company's best bet. A 10% rise in gold can result in an estimated 26% increase to the firms NAV forecast. But really, Credit Suisse is looking for a buyout.

The firm named Kinross Gold (KGC - Get Report), AngloGold Ashanti (AU - Get Report) and Newmont Mining (NEM - Get Report) as possible buyers.

Livengood is 60 miles away from Kinross' Fort Knox mine, which International Tower Hill studied very carefully when prepping its own asset. According to Credit Suisse, Fort Knox will be on its last legs as Livengood ramps up production. "We note, however, that Kinross currently faces significant capex requirements of its own, and as such, a joint venture with Kinross is a more likely scenario."

AngloGold Ashanti is a South African miner desperately looking to diversify away from the country and currently has no exposure to Alaska. "Credit Suisse currently does not cover AngloGold, but we note that the company has a healthy cash reserve and a reasonable debt load."

Newmont is trying to grow its production 35% by 2017 to 7 million ounces and double its reserve base in 10 years. Newmont isn't mining in Alaska currently and "has a strong balance sheet with over $4 billion in cash and a 14% debt to capitalization ratio," according to Credit Suisse.

CEO Richard O'Brien in a recent interview, however, said that Newmont's commitment to their new dividend, which links payout to the gold price, in addition to its exploration profile are enough to keep Newmont's cash busy.

"We see enough in our own portfolio we don't need to do M&A," said O'Brien. "It would be purely opportunistic if we decide to do something."

Newmont, Kinross and AngloGold declined to comment on rumors or speculation around mergers and acquisitions.

Related Articles:

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AU $9.55 5.41%
KGC $2.24 5.16%
NEM $18.93 1.45%
THM $0.37 7.71%
AAPL $112.12 2.39%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs