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.
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.
Alix Steel in New York.
>To contact the writer of this article, click here: Alix Steel.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV