Tag Archives: Acquisition

China’s Zijin Mining Group to Acquire Nevsun Resources for C$1.86 Billion

China’s Zijin Mining Group Co is set to acquire Nevsun Resources
Friendly all-cash agreement for Nevsun to be acquired by Zijin Mining for C$1.86 billion (US$ 1.41b) or C$6 per share. (Photo: Bisha Mine, Eritrea)

BY TESFANEWS *

China’s Zijin Mining Group Co is set to acquire Canadian gold and copper miner Nevsun Resources Ltd for about C$1.86 billion ($1.41 billion), trumping multiple bids from rival Lundin Mining Corp.

In a statement on Wednesday, Nevsun said it has cut a friendly deal with Zijin Mining for C$6 a share in cash, 26 percent above Lundin’s C$4.75 tender offer. Continue reading China’s Zijin Mining Group to Acquire Nevsun Resources for C$1.86 Billion

Sunridge Gold Sold its 60% Share in Eritrea Mine to China

DEAL. Chinese State-owned company SRBM Acquired 60% share of Suridge Gold’s Asmara Project at a premium price of US$65 million

By Sunridge Gold,

Sunridge Gold (SGC: TSX.V/SGCNF: OTCQX) has struck a US$65 million cash deal to sell its 60% interest in the Asmara Mining Share Company (AMSC), holder of the Asmara Project in Eritrea, to state-owned Sichuan Road & Bridge Mining Investment Development Corp. Ltd. (SRBM) for an upfront purchase price of US$65 million cash. Continue reading Sunridge Gold Sold its 60% Share in Eritrea Mine to China

Why I Bought Nevsun Resources

Nevsun Resources is literally a cash cow. It has an incredible profit margin and also has a robust balance sheet. It’s an extremely rare mining company when it comes to profitablity and quality of its deposit

By Value Sniper,

NEVSUN Resource (NYSEMKT:NSU) is operator of the Bisha mine. It is one of the highest grade open pit copper mines in the world. The Bisha mine is located in Eritrea.

Due to its high grade, it has one of the lowest operating cash cost in the entire industry. In fact, the mine produces 196 million pounds of copper at a cash cost of only $1.05. Based on the current price of $2.8, it is possible to calculate a profit margin of almost 63%. Clearly, Nevsun will continue to stay largely profitable even if the copper price continue its downtrend.

With this incredible margin, the company has a trailing twelve months earnings per share of $0.47. It is important to mention that the firm pays a dividend of $0.16 per year. It represents an annual yield of 4.4%.  Continue reading Why I Bought Nevsun Resources