MAG Silver a takeover target?
With MAG Silver (AMEX:MVG) almost doubling its share price over the last 12 months, and a plethora of high-quality properties under its control, you wonder if some larger companies are again thinking it may be the right time to swoop in and acquire them before their share price really shoots up and they become extremely expensive to own.
Their market cap is only a little over $357 million as of this writing, so would be very desirable, even with their price close to double what it was last March.
I think any company that does their homework would find MAG Silver an extraordinary buy, but the existing economic climate still makes any long-term acquisition somewhat risky for all but the mining companies with the deepest pockets.
While it's somewhat doubtful, MAG Silver could be left on its own, in which case they should do well over the next decade or so, and probably further. If not, they would still be a great acquisition for the right company.
MAG Silver a takeover target?
Showing posts with label Mining Company Survival. Show all posts
Showing posts with label Mining Company Survival. Show all posts
Tuesday, March 30, 2010
Monday, March 8, 2010
Freeport-McMoRan (NYSE:FCX) Getting New Mexico Land?
Freeport-McMoRan and New Mexico Mining Land
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) may get a chance at securing land near its existing mining operations in New Mexico, as the Bureau of Land Management is looking to sell close to 1,300 acres close to the Gila National Forest.
In the past Freeport-McMoRan has evidently had some interest in the six parcels being offered, but was slow to commit to whether they parcipate in acquiring the land if the offer is officially made.
At this time it would take anywhere from one to three years for the BLM to sell the property, and it has yet to be officially appraised.
Freeport spokesman Eric Kinneberg said at this time there are no existing plans to "change operations" in New Mexico.
Freeport-McMoRan and New Mexico Mining Land
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) may get a chance at securing land near its existing mining operations in New Mexico, as the Bureau of Land Management is looking to sell close to 1,300 acres close to the Gila National Forest.
In the past Freeport-McMoRan has evidently had some interest in the six parcels being offered, but was slow to commit to whether they parcipate in acquiring the land if the offer is officially made.
At this time it would take anywhere from one to three years for the BLM to sell the property, and it has yet to be officially appraised.
Freeport spokesman Eric Kinneberg said at this time there are no existing plans to "change operations" in New Mexico.
Freeport-McMoRan and New Mexico Mining Land
Wednesday, March 3, 2010
Joy Global (NASDAQ:JOYG) Raises Guidance
Joy Global Raises Guidance
Joy Global (NASDAQ:JOYG) received a nice boost today after it raised its guidance, driving its shares higher, even though profits were lower than expected.
In their first fiscal quarter, the mining equipment manufacturer had its net profit fall by 11 percent to $76.2 million, or 73 cents a share. Last year profits came in a $85.7 million or 73 cents share.
The good news there was Joy Global beat the street consensus of 64 cents a share, giving it good news there as well, even though profits were down.
Where the guidance of Joy Global was increased was for its annual target, which originally stood at $2.85 a share, but now has increased by 20 cents a share to $3.05a share for the year.
The increased guidance was largely based on a huge increase of equipment orders of 22 percent for the first quarter, which will equal about $808 million in contrast to the same quarter last year of orders worth $684 million.
Joy Global Raises Guidance
Joy Global (NASDAQ:JOYG) received a nice boost today after it raised its guidance, driving its shares higher, even though profits were lower than expected.
In their first fiscal quarter, the mining equipment manufacturer had its net profit fall by 11 percent to $76.2 million, or 73 cents a share. Last year profits came in a $85.7 million or 73 cents share.
The good news there was Joy Global beat the street consensus of 64 cents a share, giving it good news there as well, even though profits were down.
Where the guidance of Joy Global was increased was for its annual target, which originally stood at $2.85 a share, but now has increased by 20 cents a share to $3.05a share for the year.
The increased guidance was largely based on a huge increase of equipment orders of 22 percent for the first quarter, which will equal about $808 million in contrast to the same quarter last year of orders worth $684 million.
Joy Global Raises Guidance
JPMorgan (NYSE:JPM): Terex (NYSE:TEX) for Sale?
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Friday, February 26, 2010
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Newmont Mining (NYSE:NEM) enjoyed a super fourth quarter as far as earnings go, performing far beyond expectations, as prices shot up for copper and gold, while the management reined in costs to generate the great numbers.
Earnings for the fourth quarter reached $558 million or $1.13 a share, an increase of $4 million from a year ago.
Overall sales of gold grew by 55 percent while copper sales were over ten times what they were from the year before, rising from $47 million to an extraordinary $533 million.
Reserves for both metals increased as well for the year, with copper reserves increasing 17 percent and gold reserves increasing by 8 percent.
It's great to see the second-largest gold mining company behind Barrick Gold (NYSE:ABX) not only flourish because of market demand, but also because they took steps to cut back on costs at the time good management does: when things are going great. Good job overall for Newmont and good discipline.
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Newmont Mining (NYSE:NEM) enjoyed a super fourth quarter as far as earnings go, performing far beyond expectations, as prices shot up for copper and gold, while the management reined in costs to generate the great numbers.
Earnings for the fourth quarter reached $558 million or $1.13 a share, an increase of $4 million from a year ago.
Overall sales of gold grew by 55 percent while copper sales were over ten times what they were from the year before, rising from $47 million to an extraordinary $533 million.
Reserves for both metals increased as well for the year, with copper reserves increasing 17 percent and gold reserves increasing by 8 percent.
It's great to see the second-largest gold mining company behind Barrick Gold (NYSE:ABX) not only flourish because of market demand, but also because they took steps to cut back on costs at the time good management does: when things are going great. Good job overall for Newmont and good discipline.
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Monday, January 26, 2009
Commodities: Caterpillar in Massive Layoffs
Caterpillar, the huge mining and construction equipment maker, announced today it was going to lay off about 20,000 people in response to a worst than expected quarter, as plunging commodity prices caused mining companies to cut back on equipment acquisitions.
According to Caterpillar, their net profit in the fourth quarter plunged by 32 percent to $661 million from the same time a year ago.
The performance was so bad for the equipment maker that they said 2009 will be their poorest year since World War II. Earnings for the fourth quarter came in at $1.08, in contrast to the estimated $1.31 analysts were looking for.
Caterpillar CEO Jim Owens concurred with the outlook, saying it's going to be a very tough year for the company.
Much of the poor performance came from mining companies, as they cut back on equipment purchases as commodity prices fell in a big way in the last part of 2008.
This is unfortunate, as it looks like with gold and silver prices rising, the last half of 2009 will probably be a good one, as money starts flowing to acquiring equipment again. But the battering on Caterpillar forces them to make these moves in order to survive.
Looking ahead, Caterpillar cut its 2009 sales and earnings guidance from $51.3 billion and $5.66 a share, to $40 billion and $2.50 a share.
The first half will be brutal for the company, but as I said, the second half will bring some recovery, but it won't be nearly enough or in time to offer any short-term support to the company or stock.
Why this is significant, especially in the commodities sector, is Caterpillar is a bellwhether for the overall economy; both nationally and internationally. Taking this big of a hit has brought optimism back to reality, and tells us things will be tough going ahead.
For investors, this should be a sign that gold and silver will continue to be good places to put their money in 2009, as the U.S. dollar will weaken and diminish as a place of safety, and gold especially will start to be the place people look for for safety, as it usually is in times like this.
According to Caterpillar, their net profit in the fourth quarter plunged by 32 percent to $661 million from the same time a year ago.
The performance was so bad for the equipment maker that they said 2009 will be their poorest year since World War II. Earnings for the fourth quarter came in at $1.08, in contrast to the estimated $1.31 analysts were looking for.
Caterpillar CEO Jim Owens concurred with the outlook, saying it's going to be a very tough year for the company.
Much of the poor performance came from mining companies, as they cut back on equipment purchases as commodity prices fell in a big way in the last part of 2008.
This is unfortunate, as it looks like with gold and silver prices rising, the last half of 2009 will probably be a good one, as money starts flowing to acquiring equipment again. But the battering on Caterpillar forces them to make these moves in order to survive.
Looking ahead, Caterpillar cut its 2009 sales and earnings guidance from $51.3 billion and $5.66 a share, to $40 billion and $2.50 a share.
The first half will be brutal for the company, but as I said, the second half will bring some recovery, but it won't be nearly enough or in time to offer any short-term support to the company or stock.
Why this is significant, especially in the commodities sector, is Caterpillar is a bellwhether for the overall economy; both nationally and internationally. Taking this big of a hit has brought optimism back to reality, and tells us things will be tough going ahead.
For investors, this should be a sign that gold and silver will continue to be good places to put their money in 2009, as the U.S. dollar will weaken and diminish as a place of safety, and gold especially will start to be the place people look for for safety, as it usually is in times like this.
Wednesday, October 29, 2008
Commodities: Gold Mining Companies
Gold mining companies looking to preserve capital for yellow commodity business
Until the forced liquidation period is over, mining companies will have as their major goal the preservation of capital, rather than exploration and expansion. In other words, survival is the key during this difficult economic period.
None of the underlying fundamentals for demand has changed, as the needs of China remain. What all this will do is prolong the commodity bull market as we go through this temporary hiccup.
Like in any difficult time, commodity companies with heavy debt loads will suffer more than those that are run leaner. It's also probable that some of them either won't survive, or they will be bought up by healthy companies.
As far as commodities that at this time are being considered hot for 2009, tin, manganese, molydenum and bauxite are looking good. Others like cobalt, zinc and vanadium are probably going to tank over the next year.
Allan Trench, Australasian regional director of CRU research and advisory group said, "There is opportunity for the likes of tin, manganese and bauxite -- in the same way there was in uranium two years ago and as there was in phosphate earlier this year -- for IPOs."
Commodity companies that are well run will be looking to preserve capital throughout 2009.
Until the forced liquidation period is over, mining companies will have as their major goal the preservation of capital, rather than exploration and expansion. In other words, survival is the key during this difficult economic period.
None of the underlying fundamentals for demand has changed, as the needs of China remain. What all this will do is prolong the commodity bull market as we go through this temporary hiccup.
Like in any difficult time, commodity companies with heavy debt loads will suffer more than those that are run leaner. It's also probable that some of them either won't survive, or they will be bought up by healthy companies.
As far as commodities that at this time are being considered hot for 2009, tin, manganese, molydenum and bauxite are looking good. Others like cobalt, zinc and vanadium are probably going to tank over the next year.
Allan Trench, Australasian regional director of CRU research and advisory group said, "There is opportunity for the likes of tin, manganese and bauxite -- in the same way there was in uranium two years ago and as there was in phosphate earlier this year -- for IPOs."
Commodity companies that are well run will be looking to preserve capital throughout 2009.
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