- Endeavour Mining announced last month that it would be merging with Teranga Gold, valuing Teranga Gold at $2.0~ billion.
- This deal valued Teranga at $156.61/oz on a resource basis, a very reasonable price to pay for one of the top-3 gold producers in Africa.
- Based on costs continuing to trend lower as Teranga's Sabodala-Massawa Mine ramps up, Endeavour is expected to be one of the industry's lowest-cost million-ounce producers.
- I believe this deal has made Endeavour a top-12 gold producer in the sector, and I would view any pullbacks below US$21.50 as a low-risk buying opportunity.
For further details see:
Endeavour Mining: Teranga Merger Creates An Industry-Leading Gold Producer